Deforestation, Growth and Agglomeration Effects: Evidence From Agriculture in the Brazilian Amazon
The role of population growth and migration has been emphasized as a key variable to explain deforestation and land conversion in developing countries. In early studies a â€˜Malthusianâ€™ process is put forward to associate the growing demand for resources caused by larger populations in frontier areas. Recent empirical research has also focused on the role of population primarily as a measure for local demand and pressure over natural resources. 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 â€˜large varieties of cities as shown by the stability of urban hierarchy within most countriesâ€™. 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. The Brazilian Amazon is perhaps one of the most interesting regions for analysing eventual relationships between agglomeration economies, economic growth and deforestation. In this paper we empirically examine whether an initial level of agglomeration impacts the subsequent economic growth and deforestation rates in the Brazilian Amazon. We also test whether congestion effects at the higher levels of agglomeration limit these impacts by a non-linear relationship. 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. We also find evidence of other factors associated with growth and land conversion.
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.:
- J. Vernon Henderson, 2000. "The Effects of Urban Concentration on Economic Growth," NBER Working Papers 7503, National Bureau of Economic Research, Inc.
- Florax, R. & Folmer, H., 1991.
"Specification and Estimation of Spatial Linear Regression Models: Monte Carlo Evaluation of Pre-Test Estimator,"
Mansholt Working Papers
1991-4, Wageningen University, Mansholt Graduate School of Social Sciences.
- Florax, Raymond & Folmer, Henk, 1992. "Specification and estimation of spatial linear regression models : Monte Carlo evaluation of pre-test estimators," Regional Science and Urban Economics, Elsevier, vol. 22(3), pages 405-432, September.
- Alex Anas & Richard Arnott & Kenneth A. Small, 1998.
"Urban Spatial Structure,"
Journal of Economic Literature,
American Economic Association, vol. 36(3), pages 1426-1464, September.
- Richard Arnott & Alex Anas & Kenneth Small, 1997. "Urban Spatial Structure," Boston College Working Papers in Economics 388., Boston College Department of Economics.
- Anas, Alex & Arnott, Richard & Small, Kenneth A., 1997. "Urban Spatial Structure," University of California Transportation Center, Working Papers qt835049q3, University of California Transportation Center.
- Robert T. Deacon, 1994. "Deforestation and the Rule of Law in a Cross-Section of Countries," Land Economics, University of Wisconsin Press, vol. 70(4), pages 414-430.
- Bernard Fingleton & Danilo Igliori & Barry Moore, 2005. "Cluster Dynamics: New Evidence and Projections for Computing Services in Great Britain," Journal of Regional Science, Wiley Blackwell, vol. 45(2), pages 283-311.
- Pfaff, Alexander S. P., 1999. "What Drives Deforestation in the Brazilian Amazon?: Evidence from Satellite and Socioeconomic Data," Journal of Environmental Economics and Management, Elsevier, vol. 37(1), pages 26-43, January.
- Williamson, Jeffrey G., 1988. "Migration and urbanization," Handbook of Development Economics, in: Hollis Chenery & T.N. Srinivasan (ed.), Handbook of Development Economics, edition 1, volume 1, chapter 11, pages 425-465 Elsevier.
- Duranton, Gilles & Puga, Diego, 2004.
"Micro-foundations of urban agglomeration economies,"
Handbook of Regional and Urban Economics,
in: J. V. Henderson & J. F. Thisse (ed.), Handbook of Regional and Urban Economics, edition 1, volume 4, chapter 48, pages 2063-2117
- Duranton, Gilles & Puga, Diego, 2003. "Microfoundations of Urban Agglomeration Economies," CEPR Discussion Papers 4062, C.E.P.R. Discussion Papers.
- Giles Duranton & Diego Puga, 2003. "Micro-Foundations of Urban Agglomeration Economies," NBER Working Papers 9931, National Bureau of Economic Research, Inc.
- Quah, Danny, 2002.
"Spatial Agglomeration Dynamics,"
CEPR Discussion Papers
3208, C.E.P.R. Discussion Papers.
- Harry H. Kelejian & Ingmar R. Prucha, 1997.
"A Generalized Spatial Two Stage Least Squares Procedure for Estimating a Spatial Autoregressive Model with Autoregressive Disturbances,"
Electronic Working Papers
97-002, University of Maryland, Department of Economics, revised Aug 1997.
- Kelejian, Harry H & Prucha, Ingmar R, 1998. "A Generalized Spatial Two-Stage Least Squares Procedure for Estimating a Spatial Autoregressive Model with Autoregressive Disturbances," The Journal of Real Estate Finance and Economics, Springer, vol. 17(1), pages 99-121, July.
- Baldwin, Richard & Martin, Philippe, 2003.
"Agglomeration and Regional Growth,"
CEPR Discussion Papers
3960, C.E.P.R. Discussion Papers.
- Andersen,Lykke E. & Granger,Clive W. J. & Reis,Eustaquio J. & Weinhold,Diana & Wunder,Sven, 2002. "The Dynamics of Deforestation and Economic Growth in the Brazilian Amazon," Cambridge Books, Cambridge University Press, number 9780521811972, December.
- Barbier, E B & Burgess, J C, 2001. " The Economics of Tropical Deforestation," Journal of Economic Surveys, Wiley Blackwell, vol. 15(3), pages 413-433, July.
- Chomitz, Kenneth M. & Thomas, Timothy S., 2001. "Geographic patterns of land use and land intensity in the Brazilian Amazon," Policy Research Working Paper Series 2687, The World Bank.
- Paul Krugman, 1990.
"Increasing Returns and Economic Geography,"
NBER Working Papers
3275, National Bureau of Economic Research, Inc.
- Edward L. Glaeser & Hedi D. Kallal & Jose A. Scheinkman & Andrei Shleifer, 1991.
"Growth in Cities,"
NBER Working Papers
3787, National Bureau of Economic Research, Inc.
- Cropper, Maureen & Griffiths, Charles, 1994. "The Interaction of Population Growth and Environmental Quality," American Economic Review, American Economic Association, vol. 84(2), pages 250-254, May.
- Deichmann, Uwe & Henderson, Vernon, 2000. "Urban and regional dynamics in Poland," Policy Research Working Paper Series 2457, The World Bank.
- THISSE, Jacques-François & VAN YPERSELE, Tanguy, "undated".
"The challenge raised by metropolisation and fiscal competition in economic development,"
CORE Discussion Papers RP
1426, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Jacques-François Thisse & Tanguy van Ypersele, 1999. "The Challenge Raised by Metropolitisation and Fiscal Competition in Economic Development," The World Economy, Wiley Blackwell, vol. 22(9), pages 1201-1220, December.
- Walker, Robert & Moran, Emilio & Anselin, Luc, 2000. "Deforestation and Cattle Ranching in the Brazilian Amazon: External Capital and Household Processes," World Development, Elsevier, vol. 28(4), pages 683-699, April.
- Lucas, Robert Jr., 1988. "On the mechanics of economic development," Journal of Monetary Economics, Elsevier, vol. 22(1), pages 3-42, July.
- Lykke E. Andersen & Eustáquio J. Reis, 2015. "Deforestation, Development, and Government Policy in the Brazilian Amazon: an Econometric Analysis," Discussion Papers 0069, Instituto de Pesquisa Econômica Aplicada - IPEA.
When requesting a correction, please mention this item's handle: RePEc:wiw:wiwrsa:ersa06p719. 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: (Gunther Maier)
If references are entirely missing, you can add them using this form.