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Evidence on Wealth-Improving Effects of Forest Concessions in Liberia

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  • Suhyun Jung
  • Chuan Liao
  • Arun Agrawal
  • Daniel G. Brown

Abstract

The effects of resource-led development on local people’s well-being are disputed. Using four rounds of Demographic and Health Survey data in Liberia, we find that households living closer to active forest concessions achieved a higher asset-based wealth score compared to those living farther away. These wealth-improving effects did not stem, however, from the direct employment effects of concessions. Rather, evidence suggests that indirect general equilibrium effects related to demand for goods and services and increased employment in all-year and nonsubsistence jobs are the main channels. Our study underlines potential wealth-improving effects of resource-led development in poor countries, thereby contributing to the literature on well-being impacts of resource-led development on local people.

Suggested Citation

  • Suhyun Jung & Chuan Liao & Arun Agrawal & Daniel G. Brown, 2019. "Evidence on Wealth-Improving Effects of Forest Concessions in Liberia," Journal of the Association of Environmental and Resource Economists, University of Chicago Press, vol. 6(5), pages 961-1000.
    • Handle: RePEc:ucp:jaerec:doi:10.1086/704614
    DOI: 10.1086/704614
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    Cited by:

    1. Bocci, Corinne F., 2023. "Assessing the private and social benefits of forest concessions in the Maya Biosphere Reserve," 2023 Annual Meeting, July 23-25, Washington D.C. 335973, Agricultural and Applied Economics Association.
    2. Oldekop, Johan A. & Gabay, Monica & Humphreys, David & Kamoto, Judith F.M. & Mutta, Doris N. & Song, Conghe & Timko, Joleen & Rasmussen, Laura Vang & Stoian, Dietmar, 2021. "A framework for analysing contextual factors shaping forest-poverty dynamics," Forest Policy and Economics, Elsevier, vol. 132(C).
    3. Bocci, Corinne & Sohngen, Brent & Finnegan, Bridget & Milian, Bayron, 2022. "An analysis of migrant characteristics in forest-dwelling communities in northern Guatemala," Forest Policy and Economics, Elsevier, vol. 140(C).
    4. Shang Xu & H. Allen Klaiber & Daniela A. Miteva, 2023. "Impacts of forest conservation on local agricultural labor supply: Evidence from the Indonesian forest moratorium," American Journal of Agricultural Economics, John Wiley & Sons, vol. 105(3), pages 940-965, May.

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