Cattle's expansion to the legal Amazon: spatial externalities, credit market access and intensification of production

Authors

Abstract

Abstract

This paper analyses the spatial distribution of the bovine herd in the Brazilian micro-regions between 1995 and 2016, especially in the Legal Amazon. From a spatial analysis with panel data, the growth rate showed to be between 5.6% to 15.68% higher in the Legal Amazon, while the increase in bovine density (herd per km²) was higher in 11.11% to 21.47%, indicating a possible intensification of production in the region. In addition, there was a regional deconcentration of Brazilian livestock, especially due to positive spatial externalities that helped the spread of the herd. Credit for livestock also proved to be important to explain this growth by generating forces of attraction and propulsion for production. Specifically, the productivity of the inputs used in bovine nutrition (soybeans, corn and sugar cane) helped the growth of bovine density, but not in the herd, which corroborates its relationship with the intensification of production.

Keywords: Cattle, Legal Amazon, Spatial Panel Data.

JEL Codes: Q13, R12, R14

Published

2021-07-19

How to Cite

FREITAS JÚNIOR, A. M. de; BARROS, P. H. B. de. Cattle’s expansion to the legal Amazon: spatial externalities, credit market access and intensification of production. Nova Economia, [S. l.], v. 31, n. 1, p. 303–333, 2021. Disponível em: https://revistas.face.ufmg.br/index.php/novaeconomia/article/view/5064. Acesso em: 30 jun. 2024.