Possible regional impacts of agricultural trade liberalization in Brazil: some insights based on the estimation of soybean supply function
AbstractAn important debate exists on whether soybean expansion in Brazil is responsible for putting more pressure on the Amazon forest or if it allows land use intensification through the recuperation of degraded pasture. In this paper, we estimate regional soybean supply own and cross price elasticity in order to better assess the possible impacts of agricultural trade liberalization in old and new soybean production basins. Applying a panel data estimation technique, we find large substitution supply elasticity between soybean and beef in Brazil Moreover, own price elasticity of soybean supply is much higher in Cerrados regions that in the South of the country. These results allow to discuss possible regional consequences of soybean trade liberalization on the Amazon forest. The current movements to promote sustainable and responsible soybean production in Brazil could certainly modify the future response of the sector to trade liberalization and its long term impacts.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by European Association of Agricultural Economists in its series 106th Seminar, October 25-27, 2007, Montpellier, France with number 7930.
Date of creation: 2007
Date of revision:
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Nickell, Stephen J, 1981. "Biases in Dynamic Models with Fixed Effects," Econometrica, Econometric Society, vol. 49(6), pages 1417-26, November.
- Anderson, T. W. & Hsiao, Cheng, 1982. "Formulation and estimation of dynamic models using panel data," Journal of Econometrics, Elsevier, vol. 18(1), pages 47-82, January.
- Arellano, Manuel & Bond, Stephen, 1991.
"Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations,"
Review of Economic Studies,
Wiley Blackwell, vol. 58(2), pages 277-97, April.
- Tom Doan, . "RATS program to replicate Arellano-Bond 1991 dynamic panel," Statistical Software Components RTZ00169, Boston College Department of Economics.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search).
If references are entirely missing, you can add them using this form.