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The short-run and long-run effects of corruption control and political stability on forest cover

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  • Galinato, Gregmar I.
  • Galinato, Suzette P.

Abstract

This article examines how governance, particularly corruption control and political stability, affects deforestation due to agricultural land expansion. We estimate the short-run and long-run effects of corruption control and political stability on deforestation in South American and Asian countries using data from 1990 to 2003 where converting forest land into agricultural land is a significant problem. Political stability has a positive and significant effect on forest cover in the short run but an insignificant effect in the long run. In contrast, corruption control has a negative and significant effect on forest cover in the short run and the long run with a larger magnitude in the former. One possible explanation is that corruption control induces more technological productivity and, if technology and land use are complements, increases in technological development lead to agricultural land expansion.

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  • Galinato, Gregmar I. & Galinato, Suzette P., 2013. "The short-run and long-run effects of corruption control and political stability on forest cover," Ecological Economics, Elsevier, vol. 89(C), pages 153-161.
    • Handle: RePEc:eee:ecolec:v:89:y:2013:i:c:p:153-161
    DOI: 10.1016/j.ecolecon.2013.02.014
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    3. Sabrine Dhahri & Anis Omri, 2020. "Does foreign capital really matter for the host country agricultural production? Evidence from developing countries," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 156(1), pages 153-181, February.
    4. Gregmar Galinato & Suzette Galinato, 2013. "The Role of Government Spending on Deforestation and Carbon Dioxide Emissions from Land Use Change," Working Papers 2013-14, School of Economic Sciences, Washington State University.
    5. Afawubo, Komivi & Noglo, Yawo Agbényégan, 2019. "Remittances and deforestation in developing countries: Is institutional quality paramount?," Research in Economics, Elsevier, vol. 73(4), pages 304-320.
    6. Wolfersberger, Julien & Delacote, Philippe & Garcia, Serge, 2015. "An empirical analysis of forest transition and land-use change in developing countries," Ecological Economics, Elsevier, vol. 119(C), pages 241-251.
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    9. Galinato, Gregmar I. & Galinato, Suzette P., 2016. "The effects of government spending on deforestation due to agricultural land expansion and CO2 related emissions," Ecological Economics, Elsevier, vol. 122(C), pages 43-53.
    10. Farhad Taghizadeh-Hesary & Ehsan Rasoulinezhad & Han Phoumin, 2022. "Ways to achieve universal access to sustainable electricity in Southeast Asia," Economic Change and Restructuring, Springer, vol. 55(4), pages 2031-2050, November.
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    12. Quan-Jing Wang & Yong Geng & Xi-Qiang Xia, 2021. "The Impact of Globalization on Forest Growth: Evidence from Multinational Panel Data," IJERPH, MDPI, vol. 18(24), pages 1-19, December.
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    More about this item

    Keywords

    Deforestation; Governance; Corruption; Forest cover; Political stability;
    All these keywords.

    JEL classification:

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

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