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Linking poverty, natural resources, and financial markets: a model of land use by rural households in El Salvador

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  • Maldonado, Jorge Higinio
  • Gonzalez-Vega, Claudio

Abstract

This paper posits that deforestation and poverty levels are related through an inverted-U shape --the environmental Kuznets-- curve and that access to credit shifts this curve downwards, thus positively impacting natural resource uses. This hypothesis is tested using a household panel data set from El Salvador.

Suggested Citation

  • Maldonado, Jorge Higinio & Gonzalez-Vega, Claudio, 2004. "Linking poverty, natural resources, and financial markets: a model of land use by rural households in El Salvador," 2004 Annual meeting, August 1-4, Denver, CO 20085, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    • Handle: RePEc:ags:aaea04:20085
    DOI: 10.22004/ag.econ.20085
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    References listed on IDEAS

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    1. repec:bla:scandj:v:94:y:1992:i:2:p:253-73 is not listed on IDEAS
    2. Atkinson, A B, 1987. "On the Measurement of Poverty," Econometrica, Econometric Society, vol. 55(4), pages 749-764, July.
    3. Foster, James & Greer, Joel & Thorbecke, Erik, 1984. "A Class of Decomposable Poverty Measures," Econometrica, Econometric Society, vol. 52(3), pages 761-766, May.
    4. repec:bla:jecsur:v:15:y:2001:i:3:p:413-33 is not listed on IDEAS
    5. H.A. Freeman & Simeon K. Ehui & Mohammad A. Jabbar, 1998. "Credit constraints and smallholder dairy production in the East African highlands: application of a switching regression model," Agricultural Economics, International Association of Agricultural Economists, vol. 19(1-2), pages 33-44, September.
    6. Pichon, Francisco J, 1997. "Colonist Land-Allocation Decisions, Land Use, and Deforestation in the Ecuadorian Amazon Frontier," Economic Development and Cultural Change, University of Chicago Press, vol. 45(4), pages 707-744, July.
    7. Holden, Stein T., 1993. "Peasant household modelling: Farming systems evolution and sustainability in northern Zambia," Agricultural Economics, Blackwell, vol. 9(3), pages 241-267, September.
    8. Jonathan Morduch, 1995. "Income Smoothing and Consumption Smoothing," Journal of Economic Perspectives, American Economic Association, vol. 9(3), pages 103-114, Summer.
    9. Grepperud, Sverre, 1996. "Population Pressure and Land Degradation: The Case of Ethiopia," Journal of Environmental Economics and Management, Elsevier, vol. 30(1), pages 18-33, January.
    10. Jabbar, M. A. & Ehui, S. K. & Von Kaufmann, R., 2002. "Supply and Demand for Livestock Credit in Sub-Saharan Africa: Lessons for Designing New Credit Schemes," World Development, Elsevier, vol. 30(6), pages 1029-1042, June.
    11. Feder, Gershon & Lau, Lawrence J. & Lin, Justin Y. & Xiaopeng Luo, 1991. "Credit's effect on productivity in Chinese agriculture : a microeconomic model of disequilibrium," Policy Research Working Paper Series 571, The World Bank.
    12. 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.
    13. Claudio González-Vega & Jorge Rodríguez-Meza & Douglas Southgate & Jorge H. Maldonado, 2004. "Poverty, Structural Transformation, and Land Use in El Salvador: Learning from Household Panel Data," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 86(5), pages 1367-1374.
    14. Lee, Lung-Fei, 1978. "Unionism and Wage Rates: A Simultaneous Equations Model with Qualitative and Limited Dependent Variables," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 19(2), pages 415-433, June.
    15. Douglas Southgate, 1990. "The Causes of Land Degradation along "Spontaneously" Expanding Agricultural Frontiers in the Third World," Land Economics, University of Wisconsin Press, vol. 66(1), pages 93-101.
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    Cited by:

    1. Iman Widhiyanto & Nunung Nuryartono & Harianto Harianto & Hermanto Siregar, 2018. "The Analysis of Farmers' Financial Literacy and its' Impact on Microcredit Accessibility with Interest Subsidy on Agricultural Sector," International Journal of Economics and Financial Issues, Econjournals, vol. 8(3), pages 148-159.

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    Keywords

    Land Economics/Use;

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