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Deforestation, Growth and Agglomeration Effects: Evidence from Agriculture in the Brazilian Amazon

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  • Danilo Igliori

    ()
    (Department of Land Economy, University of Cambridge, UK)

Abstract

The role of population growth and migration has been emphasized as a key variable to explain deforestation and land conversion in developing countries. 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. 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. In this paper we empirically examine whether an initial level of agglomeration impacts the subsequent economic growth and deforestation rates in the Brazilian Amazon. The regression estimates indicate that there is a significant non-linear association between the initial intensity of agglomeration with both growth and land conversion in subsequent periods.

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Bibliographic Info

Paper provided by University of Cambridge, Department of Land Economics in its series Environmental Economy and Policy Research Working Papers with number 29.2008.

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Date of creation: 2008
Date of revision: 2008
Handle: RePEc:lnd:wpaper:200829

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Keywords: Deforestation; Agglomeration; Growth; Brazilian Amazon; Land-use change; development; conservation; spatial econometrics;

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Cited by:
  1. Ariane Manuela AMIN & Johanna Choumert & Pascale Combes Motel & Jean-Louis Combes & Eric Nazindigouba KERE & Jean Galbert ONGONO OLINGA & Sonia Schwartz, 2014. "A spatial econometric approach to spillover effects between protected areas and deforestation in the Brazilian Amazon," Working Papers halshs-00960476, HAL.
  2. 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.
  3. 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.
  4. 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.

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