Foreign Land Acquisitions and Institutional Distance

Valentina Raimondi and Margherita Scoppola


This paper investigates whether and how the distance in institutional quality between investing and target country affects the pattern of foreign land acquisitions. We estimate a panel gravity-like equation to assess the impact of the institutional distance on the amount of land acquired and the number of contracts signed. Our results show that the institutional distance significantly affects both the number of contracts and the amount of land, but that the direction of these effects varies according to the geographical region and the relative strength of institutions in the target countries, with Africa following a pattern of its own. (JEL Q15)

This article requires a subscription to view the full text. If you have a subscription you may use the login form below to view the article. Access to this article can also be purchased.

Purchase access

You may purchase access to this article. This will require you to create an account if you don't already have one.