Non-Timber Forest Products and the Cosmetic Industry: An Econometric Assessment of Contributions to Income in the Brazilian Amazon

Aghane Antunes, Cynthia S. Simmons and Joao Paulo Veiga
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Aghane Antunes: Department of Geography, University of Florida, Gainesville, FL 32611, USA
Cynthia S. Simmons: Department of Geography, University of Florida, Gainesville, FL 32611, USA
Joao Paulo Veiga: Department of Political Science, University of São Paulo, São Paulo 05508-060, Brazil

Land, 2021, vol. 10, issue 6, 1-16

Abstract: This study explores Non-Timber Forest Products (NTFPs) production and company–community partnerships with the multinational cosmetic industry. The objectives are to critically assess: (1) how income generated from market-oriented NTFPs extraction impacts small farmers’ livelihoods; and (2) whether membership in cooperatives linked to such partnerships is a factor in improved livelihood. Household-level data from 282 surveys conducted in remote communities in four municipalities in the Northeast region of the State of Pará provide empirical insight into NTFPs extraction and processing activities by smallholder farmers in the Brazilian Amazon. We employ a spatial econometric approach to assess if engagement in NTFPs extraction and membership in cooperatives result in statistically significant increases in the overall household income. A series of spatial regression models are used, including Ordinary Least Squares (OLS), Spatial Autoregressive Regression (SAR), Spatial Error Model (SEM), Spatial Durbin Model (SDM) and their corresponding alternative Bayesian models. Our study finds that NTFP extraction and membership in cooperatives tied to company–community partnerships are statistically significant and result in increases in total income at the household level. Findings also show that distance to transportation modes and markets are statistically significant with more distant households earning greater income. This finding presents challenges for the long-term sustainability of green alternatives to development that rely on remote, inaccessible environments for the commodities of interest. This is especially pronounced given the commitment of the Amazonian Nations, and the massive national and international investments, in the Initiative for the Integration of Regional Infrastructure in South America (IIRSA), which has as its goal the creation of a multimodal transportation hub to integrate the continent with global markets and make accessible far reaches of the Amazon.

Keywords: NTFPs; cosmetic industry; company–community partnership; smallholder extractivists and farmers; rural livelihoods and income (search for similar items in EconPapers)
JEL-codes: Q15 Q2 Q24 Q28 Q5 R14 R52 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:gam:jlands:v:10:y:2021:i:6:p:588-:d:567499

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