Does Natural Resource Extraction Mitigate Poverty and Inequality? Evidence from Rural Mexico
The potential importance of natural resources in poor rural household livelihoods has long been recognized but seldom quantified and analyzed. In this paper we examine distributional and poverty effects of natural resource extraction. To do so we use new data from a national rural household survey and a community survey implemented in Lacandona Rainforest of México. By using Gini and poverty decomposition techniques, as well as bootstrapping methods, we analyze how poverty and inequality change if income from natural resources is not considered when calculating total household income. The marginal impact that a change in price (or in availability) of resources has on inequality is also described. Finally, with information from Frontera Corozal, the community in the Selva Lacandona , the short-run poverty effects of changes in the price of a non-timber forest product (NTFP) are evaluated. Our findings highlight the importance of income from natural resource extraction in alleviating poverty and income inequality in rural México. The loss of income from resource extraction would significantly affect both poverty and inequality nationally as well as in the resource-rich South-Southeast region and in the Lacandona Rainforest community. This research takes a first step towards assessing non-timber forest products extraction as a poverty alleviating tool. Results from the simulation of NTFP price increases in Frontera Corozal show that poverty can be reduced, at least in the short-run, via this price mechanism.
|Date of creation:||2006|
|Contact details of provider:|| Web page: http://www.iaae-agecon.org/|
More information through EDIRC
References listed on IDEAS
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.:
- Reddy, S. R. C. & Chakravarty, S. P., 1999. "Forest Dependence and Income Distribution in a Subsistence Economy: Evidence from India," World Development, Elsevier, vol. 27(7), pages 1141-1149, July.
- Lerman, Robert I & Yitzhaki, Shlomo, 1985. "Income Inequality Effects by Income," The Review of Economics and Statistics, MIT Press, vol. 67(1), pages 151-156, February.
- Will Cavendish, 1999. "Poverty, inequality and environmental resources: quantitative analysis of rural households," CSAE Working Paper Series 1999-09, Centre for the Study of African Economies, University of Oxford.
- Fisher, Monica, 2004. "Household welfare and forest dependence in Southern Malawi," Environment and Development Economics, Cambridge University Press, vol. 9(02), pages 135-154, May.
When requesting a correction, please mention this item's handle: RePEc:ags:iaae06:25765. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.