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Agricultural development and income distribution: a comparison between Paraguay and Brazil

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Author(s):
Larissa Carolina Barboza Alvarez
Total Authors: 1
Document type: Master's Dissertation
Press: Campinas, SP.
Institution: Universidade Estadual de Campinas (UNICAMP). Instituto de Economia
Defense date:
Examining board members:
Alexandre Gori Maia; Bastiaan Reydon; Henrique Dantas Neder
Advisor: Antônio Márcio Buainain; Alexandre Gori Maia
Abstract

The recent agrarian dynamics in Paraguay seems to be reproducing the behavior observed in Brazil: growth of production and productivity in agriculture and reduction of high rates of rural poverty accompanied by the increase of inequality. The decade of 2000 was extremely favorable for agricultural development in both countries. In Brazil, the dynamics of agricultural income continued and, to a degree, accentuated extreme differences between the poorer regions associated with small family production and the richer regions associated with modern agriculture. The dynamics of agriculture in Brazil seems to be being observed in neighboring countries of the Mercosur bloc, which would allow to formulate a hypothesis on common traces of the process of agrarian development that would be characterized by the economic dynamism located in some segments along with the exclusion of a large group of producers, without being able to enter the chains of global agribusiness. In the same period the Paraguayan economy grew at a high rate, with improvements in general poverty indicators. The main hypothesis is that in Paraguay the process of agricultural and rural development is also two-way, marked by the consolidation of capital-intensive productive systems and by a dynamic that excludes and marginalizes large numbers of families from the benefits generated by the more dynamic pole. The main objective of the study is to analyze: i) the dynamics of production and labor productivity in agriculture, in comparison with other sectors of the economy; ii) the evolution in the configuration of the agricultural labor market and the appropriation of the income generated by the increase of agricultural productivity; iii) the impacts of these changes on income distribution. The results highlight that agricultural development in both countries favored the higher income group in the richer regions where modern agriculture is developed. Analyzes are based on information from official domiciliary surveys of the two countries between 2002 and 2014, a period characterized by substantial changes in the economy and rural society (AU)

FAPESP's process: 15/18083-5 - Development of agriculture and the impact on income distribution: the Paraguayan experience
Grantee:Larissa Carolina Barboza Alvarez
Support Opportunities: Scholarships in Brazil - Master