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Does Natural Resource Extraction Mitigate Poverty and Inequality? Evidence from Rural Mexico and a Lacadona Rainforest Community

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  • Lopez-Feldman, Alejandro
  • Mora, Jorge
  • Taylor, J. Edward

Abstract

The potential importance of natural resources for the livelihood of poor rural households has long been recognized but seldom quantified and analyzed. In this paper we apply poverty and inequality measures to national and community level data sets to explore the impacts of resource extraction on rural welfare. Our findings suggest that natural resource extraction reduces both income inequality and poverty. Results from a simulation analysis at the community level indicate that poverty may be reduced, in the short-run, by increases in the price of a non-timber forest product

Suggested Citation

  • Lopez-Feldman, Alejandro & Mora, Jorge & Taylor, J. Edward, 2006. "Does Natural Resource Extraction Mitigate Poverty and Inequality? Evidence from Rural Mexico and a Lacadona Rainforest Community," Working Papers 190916, University of California, Davis, Department of Agricultural and Resource Economics.
    • Handle: RePEc:ags:ucdavw:190916
    DOI: 10.22004/ag.econ.190916
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