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TABLE OF CONTENTS
List of Figures .......................................................................................................................................................................iii
List of Tables .........................................................................................................................................................................iv
List with Pictures ................................................................................................................................................................iv
List with Text Boxes...........................................................................................................................................................iv
List of Abbreviations .......................................................................................................................................................... v
Introduction..............................................................................................................................................................1
1. The Current State of Agricultural Sector in the World and the COMCEC
Member Countries.........................................................................................................................................4
1.1 Employment in Agriculture .................................................................................................................................. 4
1.2 Land Use ........................................................................................................................................................................ 6
1.3 Water Resources........................................................................................................................................................ 7
1.4 Fertilizers and Machinery................................................................................................................................... 10
1.5 Agricultural Productivity .................................................................................................................................... 11
1.6 Source: SESRIC.Agricultural Trade ................................................................................................................. 14
1.7 Importance of Agriculture in Ending Hunger ............................................................................................ 15
1.8 Chapter Assessment .............................................................................................................................................. 16
2. General Benefits, Risks and Costs of FDI in Agricultural Sector ...............................................18
2.1 FDI Decisions in the Agricultural Sector: A Firm Perspective ............................................................ 18
2.2 Four Key Drivers of FDI ....................................................................................................................................... 20
2.3 The Role of Incentives in FDI Decisions ....................................................................................................... 23
2.4 Importance of FDI in Agricultural Sector for Host Economies........................................................... 25
2.4.1 Foreign direct investment trends in the agricultural sector .................................................... 26
2.4.2 Capital formation and food security .................................................................................................... 28
2.5 Different Sources for Investment in Agricultural Sector ...................................................................... 29
2.5.1 Destination of Agricultural FDI: World and Country Regions ................................................. 30
2.6 Advantages and disadvantages and risks of FDI in the agricultural
Sector ........................................................................................................................................................................... 34
2.7 Chapter Assessment .............................................................................................................................................. 35
3. General Investment Climate Assessment and Potential for Attracting FDI in
Agriculture in the COMCEC Member Countries ...............................................................................38
3.1 Agricultural FDI Trends....................................................................................................................................... 38
3.1.1 Agricultural FDI Projects at Firm Level in the COMCEC Region.............................................. 39
3.1.2 Overview of sectors and sub-sectors included in FDI analysis ............................................... 39
3.1.3 Destination of Agricultural FDI investments in the COMCEC Region ................................... 41
3.1.4 Firm level FDI assessment ....................................................................................................................... 44
3.1.5 Industry and Sub-sector Analysis at Category of Agricultural Activity Level ................... 46
3.2 Agricultural FDI in Countries with Different Stages of Development ............................................. 48
3.3 Location Benchmarking for FDI in Agriculture in the COMCEC Region......................................... 52
3.4 Challenges and Weaknesses of the Business Environment in the
COMCEC Region ...................................................................................................................................................... 58
3.5 Chapter Assessment .............................................................................................................................................. 60
4. Case Studies ..................................................................................................................................................62
4.1 Case I Saudi Arabia, and Qatar as Sources for Outward FDI ............................................................... 62
4.2 Case II Turkey as destination for inward FDI ............................................................................................ 68