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Economic Growth and Liquidation of Natural Capital: The Case of Forest Clearance

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  • Robin Naidoo
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    Abstract

    The importance of natural capital to economic systems is increasingly recognized. Previous empirical models of economic growth rates, however, have emphasized accumulation of physical and human capital. This paper shows that the economic growth of over 70 countries has been positively affected by liquidation of one aspect of natural capital, forests, while controlling for factors typically associated with national growth rates. The positive association was robust to additions of various covariates, such as forest exports, level of economic development, agricultural area, and geographical position. These results suggest that conversion of forests has partially fuelled the economic expansion of countries

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    File URL: http://le.uwpress.org/cgi/reprint/85/2/194
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    Bibliographic Info

    Article provided by University of Wisconsin Press in its journal Land Economics.

    Volume (Year): 80 (2004)
    Issue (Month): 2 ()
    Pages: 194-208

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    Handle: RePEc:uwp:landec:v:80:y:2004:i:2:p:194-208

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    Web page: http://le.uwpress.org/

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    Cited by:
    1. Mills, Julianne H. & Waite, Thomas A., 2009. "Economic prosperity, biodiversity conservation, and the environmental Kuznets curve," Ecological Economics, Elsevier, vol. 68(7), pages 2087-2095, May.
    2. Helene Ollivier, 2012. "Growth, deforestation and the efficiency of the REDD mechanism," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) hal-00750718, HAL.
    3. Canares, Michael, 2009. "Macro-economic trends and their impacts on forests and forestry in Asia and the Pacific, outlook to 2020," MPRA Paper 28970, University Library of Munich, Germany.

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