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Governance and Deforestation Due to Agricultural Land Expansion

Author

Listed:
  • Gregmar I. Galinato
  • Suzette P. Galinato

    () (School of Economic Sciences, Washington State University)

Abstract

This article examines the effect of governance on forest cover in developing countries. We develop a theoretical model that explains how governance, particularly corruption control and politically stability, affects deforestation due to agricultural land expansion. The theoretical model shows the importance of the complementarity or substitutability of technology and land use in determining the effect of governance on agricultural land expansion and, consequently, forest cover. We complement the theoretical model with a structural empirical analysis to measure the effect of corruption control and political stability on deforestation in developing countries through two direct channels of deforestation: agricultural land expansion and road building. We find that political stability has a positive and significant effect on forest cover but corruption control has a negative and significant effect on forest cover due to increased agricultural land expansion.

Suggested Citation

  • Gregmar I. Galinato & Suzette P. Galinato, 2009. "Governance and Deforestation Due to Agricultural Land Expansion," Working Papers 2009-21, School of Economic Sciences, Washington State University.
  • Handle: RePEc:wsu:wpaper:galinato-3
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    File URL: http://faculty.ses.wsu.edu/WorkingPapers/Galinato/WP2009-21.pdf
    File Function: First version, 2009
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    Cited by:

    1. Gregmar Galinato & Suzette Galinato, 2010. "The Effects of Corruption Control and Political Stability on the Environmental Kuznets Curve of Deforestation-Induced Carbon Dioxide Emissions," Working Papers 2010-9, School of Economic Sciences, Washington State University.

    More about this item

    Keywords

    Deforestation; Governance; Corruption; Political stability;

    JEL classification:

    • Q23 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Forestry
    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General

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