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Soybeans, Poverty and Inequality in the Brazilian Amazon

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  • Weinhold, Diana
  • Killick, Evan
  • Reis, Eustaquio Jose

Abstract

The recent growth of soybean cultivation in the Brazilian Amazon has been unprecedented, even as the debate continues over its economic and environmental consequences. Based on contemporary datasets as well as our own field studies, this paper examines the social and economic costs and benefits of increases in soybean production for local populations. After presenting some background information on the rise of soybean cultivation in Brazil we examine the relationship between increases in soybean production and local economic indicators. We find that increased soy production raises median rural incomes and may reduce poverty. However, we also note that this increase is associated with increased measures of inequality, and we consider the wider political and social consequences of this connection in our qualitative fieldwork. The mixed-method approach helps shed light not only economic effects of soy cultivation but also on the more complex social and political context that is, arguably, even more policy-relevant.

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  • Weinhold, Diana & Killick, Evan & Reis, Eustaquio Jose, 2011. "Soybeans, Poverty and Inequality in the Brazilian Amazon," MPRA Paper 29647, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:29647
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    1. Corrina Steward, 2007. "From colonization to “environmental soy”: A case study of environmental and socio-economic valuation in the Amazon soy frontier," Agriculture and Human Values, Springer;The Agriculture, Food, & Human Values Society (AFHVS), vol. 24(1), pages 107-122, March.
    2. Andersen,Lykke E. & Granger,Clive W. J. & Reis,Eustaquio J. & Weinhold,Diana & Wunder,Sven, 2002. "The Dynamics of Deforestation and Economic Growth in the Brazilian Amazon," Cambridge Books, Cambridge University Press, number 9780521811972, October.
    3. Vera-Diaz, Maria del Carmen & Kaufmann, Robert K. & Nepstad, Daniel C. & Schlesinger, Peter, 2008. "An interdisciplinary model of soybean yield in the Amazon Basin: The climatic, edaphic, and economic determinants," Ecological Economics, Elsevier, vol. 65(2), pages 420-431, April.
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    Cited by:

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    2. Reis, Tiago N.P. dos & Bastos Lima, Mairon G. & Russo Lopes, Gabriela & Meyfroidt, Patrick, 2024. "Not all supply chains are created equal: The linkages between soy local trade relations and development outcomes in Brazil," World Development, Elsevier, vol. 175(C).
    3. Russo Lopes, Gabriela & Bastos Lima, Mairon G. & Reis, Tiago N.P. dos, 2021. "Maldevelopment revisited: Inclusiveness and social impacts of soy expansion over Brazil’s Cerrado in Matopiba," World Development, Elsevier, vol. 139(C).
    4. Avery S. Cohn & Juliana Gil & Thomas Berger & Heitor Pellegrina & Chantal Toledo, "undated". "Patterns and Processes of Pasture to Crop Conversion in Brazil: Evidence from Mato Grosso State," Mathematica Policy Research Reports 8ce99775615f42b98ff43f530, Mathematica Policy Research.
    5. Arata, Linda & Hauschild, Sofia & Sckokai, Paolo, 2017. "Socio-economic impact of grape growing in North-eastern Brazil," 2017 Sixth AIEAA Conference, June 15-16, Piacenza, Italy 261264, Italian Association of Agricultural and Applied Economics (AIEAA).
    6. Sujin Choi & Hanho Kim, 2016. "The impact of conglomerate farming on the poor: Empirical evidence from the Brazil soy sector," International Area Studies Review, Center for International Area Studies, Hankuk University of Foreign Studies, vol. 19(2), pages 147-164, June.
    7. Léa Crepin, 2022. "Do forest conservation policies undermine the soybean sector in the Brazilian Amazon? Evidence from the blacklisting of municipalities," Working Papers 2022.07, FAERE - French Association of Environmental and Resource Economists.
    8. Peter Richards & Heitor Pellegrina & Leah VanWey & Stephanie Spera, 2015. "Soybean Development: The Impact of a Decade of Agricultural Change on Urban and Economic Growth in Mato Grosso, Brazil," PLOS ONE, Public Library of Science, vol. 10(4), pages 1-18, April.
    9. Luiz Antonio Martinelli & Mateus Batistella & Ramon Felipe Bicudo da Silva & Emilio Moran, 2017. "Soy Expansion and Socioeconomic Development in Municipalities of Brazil," Land, MDPI, vol. 6(3), pages 1-14, September.
    10. Simone Piras & Valdemar João Wesz & Stefano Ghinoi, 2021. "Soy Expansion, Environment, and Human Development: An Analysis across Brazilian Municipalities," Sustainability, MDPI, vol. 13(13), pages 1-20, June.
    11. Cong, Rong-Gang & Stefaniak, Irena & Madsen, Bjarne & Dalgaard, Tommy & Jensen, Jørgen Dejgård & Nainggolan, Doan & Termansen, Mette, 2017. "Where to implement local biotech innovations? A framework for multi-scale socio-economic and environmental impact assessment of Green Bio-Refineries," Land Use Policy, Elsevier, vol. 68(C), pages 141-151.
    12. Baumert, Sophia & Fisher, Janet & Ryan, Casey & Woollen, Emily & Vollmer, Frank & Artur, Luis & Zorrilla-Miras, Pedro & Mahamane, Mansour, 2019. "Forgone opportunities of large-scale agricultural investment: A comparison of three models of soya production in Central Mozambique," World Development Perspectives, Elsevier, vol. 16(C).
    13. Peter Richards, 2018. "It’s not just where you farm; it’s whether your neighbor does too. How agglomeration economies are shaping new agricultural landscapes," Journal of Economic Geography, Oxford University Press, vol. 18(1), pages 87-110.
    14. Ferreira, Susane Cristini Gomes & Azevedo-Ramos, Claudia & Farias, Hilder André Bezerra & Mota, Pedro, 2023. "Spillover effect of the oil palm boom on the growth of surrounding towns in the eastern Amazon," Land Use Policy, Elsevier, vol. 133(C).
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    More about this item

    Keywords

    soybeans; land use; brazil; poverty; inequality;
    All these keywords.

    JEL classification:

    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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