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Social networks and economic transformation: Evidence from a resettled village in Brazil

Author

Listed:
  • Margherita Comola

    (Université Paris-Saclay, PSE - Paris School of Economics - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement, PJSE - Paris Jourdan Sciences Economiques - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement)

  • Carla Inguaggiato

    (UNIBE - Universität Bern = University of Bern = Université de Berne, UNIMIB - Università degli Studi di Milano-Bicocca = University of Milano-Bicocca)

  • Mariapia Mendola

    (IZA - Forschungsinstitut zur Zukunft der Arbeit - Institute of Labor Economics)

Abstract

We study the role of social learning in the diffusion of cash crops in a resettled village economy in Brazil. We combine detailed geo-coded data on farming plots with dyadic data on social ties among settlers, and we leverage the variation in network formation induced by the landless workers' movement land occupation. By using longitudinal data on farming decisions over 15 years, we find evidence of significant peer effects in the decision to farm new cash fruits (pineapple and passion fruit). Our results suggest that social diffusion is heterogeneous along observed plot and crop characteristics, i.e. farmers growing water-sensitive crop are more likely to respond to the actions of peers with similar water access conditions.

Suggested Citation

  • Margherita Comola & Carla Inguaggiato & Mariapia Mendola, 2024. "Social networks and economic transformation: Evidence from a resettled village in Brazil," Post-Print halshs-04571235, HAL.
    • Handle: RePEc:hal:journl:halshs-04571235
    DOI: 10.1016/j.jebo.2024.03.001
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