Public expenses, credit and natural capital: Substitution or complementarity?
AbstractImproving access to capital through credit and public spendings is an important step toward development and poverty alleviation. At the same time, deforestation-related activities, like agricultural expansion, can be seen as relying on natural capital, through the depletion of forest resources and the use of land in an extensive way. It is then important to better understand how a better access to capital influences the use of land as a natural capital. This paper assesses the relationship between financial development, public spendings and deforestation. Are they substitute or complement? Our econometric analysis shows that deforestation is positively correlated to access to credit and public spendings, which gives some evidence that natural capital is a complement to credit and public spendings.
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 CERDI in its series Working Papers with number 201409.
Date of creation: 2014
Date of revision:
deforestation; development; credit; public spendings;
Other versions of this item:
- Jean-Louis Combes & Philippe Delacote & Pascale Motel Combes, 2014. "Public expenses, credit and natural capital: Substitution or complementarity?," Working Papers halshs-00979191, HAL.
- Q33 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Resource Booms (Dutch Disease)
- O13 - Economic Development, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
- C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
This paper has been announced in the following NEP Reports:
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.:
- Arcand, Jean-Louis & Guillaumont, Patrick & Jeanneney, Sylviane Guillaumont, 2008.
"Deforestation and the real exchange rate,"
Journal of Development Economics,
Elsevier, vol. 86(2), pages 242-262, June.
- Jean-Louis ARCAND & Sylviane GUILLAUMONT JEANNENEY & Patrick GUILLAUMONT, 2003. "Deforestation and the Real Exchange Rate," Working Papers 200332, CERDI.
- Jean-Louis ARCAND & Patrick GUILLAUMONT & Sylviane GUILLAUMONT JEANNENEY, 2005. "Deforestation and the Real Exchange Rate," Working Papers 200533, CERDI.
- Jean-Louis Arcand & Patrick Guillaumont & Sylviane Guillaumont Jeanneney, 2011. "Deforestation and the Real Exchange Rate," Working Papers halshs-00570477, HAL.
- Jouvet, Pierre-André & De Perthuis, Christian, 2012. "La croissance verte : de l’intention à la mise en oeuvre," Economics Papers from University Paris Dauphine 123456789/10234, Paris Dauphine University.
- Damette, Olivier & Delacote, Philippe, 2012.
"On the economic factors of deforestation: What can we learn from quantile analysis?,"
Elsevier, vol. 29(6), pages 2427-2434.
- Olivier Damette & Philippe Delacote, 2011. "On the economic factors of deforestation: what can we learn from quantile analysis?," Working Papers 1110, Chaire Economie du Climat.
- Olivier Damette & Philippe Delacote, 2012. "On the economic factors of deforestation: what can we learn from quantile analysis?," Working Papers 167890, Institut National de la Recherche Agronomique, France.
- Hung, Fu-Sheng & Cothren, Richard, 2002. "Credit market development and economic growth," Journal of Economics and Business, Elsevier, vol. 54(2), pages 219-237.
- Andrew D. Foster & Mark R. Rosenzweig, 2003. "Economic Growth And The Rise Of Forests," The Quarterly Journal of Economics, MIT Press, vol. 118(2), pages 601-637, May.
- Susana Ferreira, 2004. "Deforestation, Property Rights, and International Trade," Land Economics, University of Wisconsin Press, vol. 80(2), pages 174-193.
- Damette, Olivier & Delacote, Philippe, 2011.
"Unsustainable timber harvesting, deforestation and the role of certification,"
Elsevier, vol. 70(6), pages 1211-1219, April.
- Olivier Damette & Philippe Delacote, 2011. "Unsustainable timber harvesting, deforestation and the role of certification," Working Papers 44503, Institut National de la Recherche Agronomique, France.
- Kahn, James R. & McDonald, Judith A., 1995. "Third-world debt and tropical deforestation," Ecological Economics, Elsevier, vol. 12(2), pages 107-123, February.
- David Roodman, 2009.
"A Note on the Theme of Too Many Instruments,"
Oxford Bulletin of Economics and Statistics,
Department of Economics, University of Oxford, vol. 71(1), pages 135-158, 02.
- Cropper, Maureen & Griffiths, Charles, 1994. "The Interaction of Population Growth and Environmental Quality," American Economic Review, American Economic Association, vol. 84(2), pages 250-54, May.
- Culas, Richard J., 2007. "Deforestation and the environmental Kuznets curve: An institutional perspective," Ecological Economics, Elsevier, vol. 61(2-3), pages 429-437, March.
- Barro, Robert J, 1990.
"Government Spending in a Simple Model of Endogenous Growth,"
Journal of Political Economy,
University of Chicago Press, vol. 98(5), pages S103-26, October.
- Barro, R.J., 1988. "Government Spending In A Simple Model Of Endogenous Growth," RCER Working Papers 130, University of Rochester - Center for Economic Research (RCER).
- Barro, Robert J., 1990. "Government Spending in a Simple Model of Endogeneous Growth," Scholarly Articles 3451296, Harvard University Department of Economics.
- Robert J. Barro, 1988. "Government Spending in a Simple Model of Endogenous Growth," NBER Working Papers 2588, National Bureau of Economic Research, Inc.
- Edward Barbier, 2002.
"The Role of Natural Resources in Economic Development,"
Centre for International Economic Studies Working Papers
2002-27, University of Adelaide, Centre for International Economic Studies.
- Edward B. Barbier, 2003. "The Role of Natural Resources in Economic Development," Australian Economic Papers, Wiley Blackwell, vol. 42(2), pages 253-272, 06.
- Nickell, Stephen J, 1981. "Biases in Dynamic Models with Fixed Effects," Econometrica, Econometric Society, vol. 49(6), pages 1417-26, November.
- Rudel, Tom & Roper, Jill, 1997. "The paths to rain forest destruction: Crossnational patterns of tropical deforestation, 1975-1990," World Development, Elsevier, vol. 25(1), pages 53-65, January.
- Daly, Herman E., 1997. "Georgescu-Roegen versus Solow/Stiglitz," Ecological Economics, Elsevier, vol. 22(3), pages 261-266, September.
- Susana Ferreira & Jeffrey Vincent, 2010. "Governance and Timber Harvests," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 47(2), pages 241-260, October.
- Azqueta, Diego & Sotelsek, Daniel, 2007. "Valuing nature: From environmental impacts to natural capital," Ecological Economics, Elsevier, vol. 63(1), pages 22-30, June.
- 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.
- Gregmar Galinato & Suzette Galinato, 2013. "The Role of Government Spending on Deforestation and Carbon Dioxide Emissions from Land Use Change," Working Papers 2013-14, School of Economic Sciences, Washington State University.
- Bulte, Erwin H. & Damania, Richard & Lopez, Ramon, 2007. "On the gains of committing to inefficiency: Corruption, deforestation and low land productivity in Latin America," Journal of Environmental Economics and Management, Elsevier, vol. 54(3), pages 277-295, November.
- Edward B. Barbier, 2001. "The Economics of Tropical Deforestation and Land Use: An Introduction to the Special Issue," Land Economics, University of Wisconsin Press, vol. 77(2), pages 155-171.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Vincent Mazenod).
If references are entirely missing, you can add them using this form.