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Deforestation, Growth And Agglomeration Effects: Evidence From Agriculture In The Brazilian Amazon

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  • Danilo Camargo Igliori

Abstract

The role of population growth and migration has been emphasized as a key variable to explain deforestation and land conversion in developing countries. In early studies a ‘Malthusian’ process is put forward to associate the growing demand for resources caused by larger populations in frontier areas. Recent empirical research has also focused on the role of population primarily as a measure for local demand and pressure over natural resources. The spatial distribution of human population and economic activities is remarkably uneven. At any geographical scale we find that different forms of agglomerations are pervasive. On the one hand, in central countries or regions, agglomeration is reflected in ‘large varieties of cities as shown by the stability of urban hierarchy within most countries’. On the other, less developed regions faces a dynamic process where new agglomerations form and develop as a result of frontier expansion. The recent literature on spatial economics has emphasized the role of agglomeration and clustering of economic activities as fundamental causes of an enhanced level of local economic performance, creating externalities that cause firms to grow faster and larger than they otherwise would do. However, very little has been done to examine the presence of agglomeration economies on economic performance of agricultural activities. The Brazilian Amazon is perhaps one of the most interesting regions for analysing eventual relationships between agglomeration economies, economic growth and deforestation. In this paper we empirically examine whether an initial level of agglomeration impacts the subsequent economic growth and deforestation rates in the Brazilian Amazon. We also test whether congestion effects at the higher levels of agglomeration limit these impacts by a non-linear relationship. The regression estimates indicate that there is a significant non-linear association between the initial intensity of agglomeration with

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Bibliographic Info

Paper provided by ANPEC - Associação Nacional dos Centros de Pósgraduação em Economia [Brazilian Association of Graduate Programs in Economics] in its series Anais do XXXIV Encontro Nacional de Economia [Proceedings of the 34th Brazilian Economics Meeting] with number 102.

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Date of creation: 2006
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Handle: RePEc:anp:en2006:102

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Cited by:
  1. David Wheeler, Dan Hammer, Robin Kraft, 2011. " From REDD to Green: A Global Incentive System to Stop Tropical Forest Clearing- Working Paper 282," Working Papers 282, Center for Global Development.
  2. Dasgupta, Susmita & Hammer, Dan & Kraft, Robin & Wheeler, David, 2012. "Vyaghranomics in space and time : estimating habitat threats for Bengal, Indochinese, Malayan and Sumatran tigers," Policy Research Working Paper Series 6212, The World Bank.
  3. David Wheeler, Robin Kraft, Dan Hammer, 2011. " Forest Clearing in the Pantropics: December 2005–August 2011- Working Paper 283," Working Papers 283, Center for Global Development.

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