Agricultural development and the industry life cycle on the Brazilian frontier

In: Environment and development economics, Band 18, Heft 3, S. 326-353

Abstract

AbstractThe occupation of the last remaining tropical forests has been an initiative of many developing nations that is debated by the global community due to impacts on soil erosion, biodiversity loss and contributions to global climate change. Arguments against development range from the irreversible nature of tropical deforestation to the synergistic losses associated with environmental degradation and continued poverty. The focus of this paper is to determine if evidence of market advancements and growth can be found in an Amazonian settlement, thus providing counter-evidence for the boom–bust pattern of development that has been predicted for much of the Amazon. Using panel survey data (for four survey waves between 1996 and 2009), we find trends that are consistent with the industrial life cycle, suggesting a pattern that is more consistent with growth, development and consolidation.