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Social networks and economic transformation: Evidence from a resettled village in Brazil

Author

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  • Comola, Margherita
  • Inguaggiato, Carla
  • Mendola, Mariapia

Abstract

We study the role of social learning in the diffusion of cash crops in a resettled village economy in Brazil. We combine detailed geo-coded data on farming plots with dyadic data on social ties among settlers, and we leverage the variation in network formation induced by the landless workers' movement land occupation. By using longitudinal data on farming decisions over 15 years, we find evidence of significant peer effects in the decision to farm new cash fruits (pineapple and passion fruit). Our results suggest that social diffusion is heterogeneous along observed plot and crop characteristics, i.e. farmers growing water-sensitive crop are more likely to respond to the actions of peers with similar water access conditions.

Suggested Citation

  • Comola, Margherita & Inguaggiato, Carla & Mendola, Mariapia, 2024. "Social networks and economic transformation: Evidence from a resettled village in Brazil," Journal of Economic Behavior & Organization, Elsevier, vol. 221(C), pages 17-34.
    • Handle: RePEc:eee:jeborg:v:221:y:2024:i:c:p:17-34
    DOI: 10.1016/j.jebo.2024.03.001
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    Keywords

    Technology adoption; Agrarian reform; Social networks; Peer effects; Brazil;
    All these keywords.

    JEL classification:

    • C45 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Neural Networks and Related Topics
    • D85 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Network Formation
    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • Q15 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Land Ownership and Tenure; Land Reform; Land Use; Irrigation; Agriculture and Environment

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