Abstract
This paper examines the causes and consequences of the agricultural expansion in Matopiba (Brazil). It documents that agricultural expansion in this region is concentrated in municipalities in the Cerrado biome. Since the late 1990s, these municipalities experience larger increases in agricultural production than municipalities outside the biome. Thes municipalities also experience larger increases in GDP per capita and in the share of households with access to durable goods and to electricity over this period. These results suggest that agricultural expansion in Matopiba is associated with geographic factors and lead to improvements in economic development.
Highlights
The Matopiba—areas in the states of Maranhão, Tocantins, Piauí and Bahia located in the Cerrado biome—became an important agricultural frontier during the past 20 years
The results provide evidence that agricultural expansion positively affected the economic performance of the municipalities located in the Cerrado biome
EMBRAPA defines the Matopiba as the region located in the states of Maranhão, Tocantins, Piauí and Bahia which is covered by the Cerrado biome (Miranda et al, 2014)
Summary
The Matopiba—areas in the states of Maranhão, Tocantins, Piauí and Bahia located in the Cerrado biome—became an important agricultural frontier during the past 20 years Agricultural expansion in this region is being driven by the expansion of soy cultivation in large-scale and mechanized farms. No effect was found on local population and on educational outcomes The former result indicates that migration is not a relevant issue in the region and contrasts with the experience of the occupation of other parts of the Cerrado documented by Bragança (2014). The latter result indicates that the agricultural expansion neither crowds-in educational investments as in Foster & Rosenzweig (1996) nor crowds-out these investments as in Soares, Kruger, & Berthelon (2012) These results provide novel evidence of the economic consequences of agricultural expansion in the Matopiba region.
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