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The implication of property rights for joint agriculture–timber productivity in the Brazilian Amazon

Published online by Cambridge University Press:  25 April 2002

Tsunehiro Otsuki ,
Ian W. Hardie  and
Eustáquio J. Reis
Tsunehiro Otsuki
Affiliation:
The World Bank, 1818 H Street, NW, Washington, DC. Tel. (202) 473–8095. Fax. (202) 522–1159. Email: totsuki@worldbank.org
Ian W. Hardie
Affiliation:
Department of Agricultural and Resource Economics, University of Maryland, 2200 Symons Hall, College Park, Maryland, 20742. Tel: (301) 405–1284. Fax: (301) 314–9091. Email: ianh@arec.umd.edu
Eustáquio J. Reis
Affiliation:
Instituto de Pesquisa Econômia Aplicada, Av. Presidente Antônio Carlos, 51–14° andar CEP 20.020–010, Rio de Janeiro RJ, Brazil. Tel: 55(21) 212–1180. Fax: 55(21)240–1920. Email: ejreis@ipea.gov.br
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Abstract

This paper examines the effects of the Brazilian governments' title granting policies on the efficiency of agricultural and timber production in the Brazilian Amazon. A two-stage procedure is used that combines Data Envelopment Analysis (DEA) and a Tobit regression. Provision of private land titles before 1995 is found to positively affect the technical efficiency of agricultural and joint agriculture–timber production in 1995. Governmental expenditures, including expenditures to secure property rights, also are found to increase technical efficiency in the agricultural industry. The analysis indicates that revenue efficiency can be improved by producing more roundwood and less agricultural product. Land-granting policies may favorably affect environmental conservation by intensifying land use in agriculture, but they also may harm development by discouraging timber production.

Type
Theory and Applications
Information
Environment and Development Economics , Volume 7 , Issue 2 , May 2002 , pp. 299 - 323
Copyright
© 2002 Cambridge University Press

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Footnotes

The authors are grateful for the support from Instituto de Pesquisa Econômia Aplicada Instituto. They also thank three anonymous referees and the editor for helpful comments.