Factors Affecting the Land Investment Decisions in the Old Members of the European Union: A Systematic Literature Review
2024
Silvia Russo | Rino Ghelfi | Meri Raggi | Davide Viaggi
In response to concerns over land concentration and access within the European Union, this study seeks to elucidate the factors influencing farmers’ decisions to invest in land and the consequent growth of farm size. Employing a systematic literature review utilizing the PRISMA method, we delve into theoretical and empirical studies to bridge the gap between agricultural management practices and land market dynamics. Our analysis reveals a complex interplay of endogenous and exogenous factors, including technological advancements, farm characteristics, demographic factors, macroeconomic conditions, and policy environment, significantly impacting investment behaviours and farm growth trajectories. The research highlights the underexplored impact of external factors like policy and land regulation, which are scarcely addressed in empirical studies despite their substantial influence on farm-size evolution and investment decisions. Furthermore, the study emphasizes the need for future research to incorporate a more comprehensive framework that integrates internal farm dynamics with broader economic and policy contexts, thereby facilitating a deeper understanding of the agricultural sector’s resilience and sustainability. The findings underscore the critical role of adopting innovative methodologies and approaches to fully understand the dynamics of farm growth and land investments, aiming to support policymakers, stakeholders, and researchers in fostering sustainable agricultural practices.
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