The economics of agriculture in developing countries: The role of the environment
In: Handbook of Agricultural Economics
This chapter is concerned with agricultural supply responses in developing countries. Its main emphasis is in explicitly considering the dynamics of the natural resource base (e.g., soil quality, water, etc.) of agriculture as well as the endogenous evolution of rural environmental institutions (e.g., property rights) that may impinge upon agricultural productivity over the long run. The endogenous nature of the natural resource and institutional dynamics is particularly relevant for poor tropical areas where the agricultural and natural resource base is fragile and the rural institutions are both heterogeneous and in process of change. Under those conditions certain government policies can easily have unexpected adverse effects on agricultural productivity and farmers' income.
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