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

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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

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