Soybean development the impact of a decade of agricultural change on urban and economic growth in Mato Grosso, Brazil

Peter Richards, Heitor Pellegrina, Leah VanWey, Stephanie Spera

    Research output: Contribution to journalArticle

    Abstract

    In this research we consider the impact of export-driven, soybean agriculture in Mato Grosso on regional economic growth. Here we argue that the soybean sector has served as a motor to the state's economy by increasing the demand for services, housing, and goods, and by providing a source of investment capital to the non-agricultural sector. Specifically, we show that each square kilometer of soybean production supports 2.5 formal sector jobs outside of agriculture, and the equivalent of approximately 150,000US in annual, non-agricultural GDP. We also show that annual gains in non-agricultural employment and GDP are closely tied to soybean profitability, and thus vary from year to year. However, while this article highlights the potential of the agricultural sector as a driver of regional economic growth, it also acknowledges that this growth has been sustained by profits determined by externally set prices and the rate of exchange, and that future growth trajectories will be susceptible to potential currency of market shocks. We also show that while Mato Grosso's economic growth has come at a significant cost to the environment, value added by the agriculture sector, directly and indirectly, has surpassed the value of the CO2-e emitted through land clearings.

    Original languageEnglish (US)
    Article numbere0122510
    JournalPLoS One
    Volume10
    Issue number4
    DOIs
    StatePublished - Apr 28 2015

    Fingerprint

    Economic Development
    economic development
    Soybeans
    urbanization
    Brazil
    Agriculture
    regional economics
    soybeans
    Economics
    agriculture
    economic investment
    Profitability
    agricultural industry
    value added
    Growth
    profitability
    profits and margins
    trajectories
    Shock
    markets

    ASJC Scopus subject areas

    • Medicine(all)
    • Biochemistry, Genetics and Molecular Biology(all)
    • Agricultural and Biological Sciences(all)

    Cite this

    Soybean development the impact of a decade of agricultural change on urban and economic growth in Mato Grosso, Brazil. / Richards, Peter; Pellegrina, Heitor; VanWey, Leah; Spera, Stephanie.

    In: PLoS One, Vol. 10, No. 4, e0122510, 28.04.2015.

    Research output: Contribution to journalArticle

    Richards, Peter ; Pellegrina, Heitor ; VanWey, Leah ; Spera, Stephanie. / Soybean development the impact of a decade of agricultural change on urban and economic growth in Mato Grosso, Brazil. In: PLoS One. 2015 ; Vol. 10, No. 4.
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