Does natural resource extraction mitigate poverty and inequality? Evidence from rural Mexico and a Lacandona Rainforest Community

L Pez-Feldman, Alejandro, Jorge Mora and J. Edward Taylor
Authors registered in the RePEc Author Service: Alejandro Lopez-Feldman ()

Environment and Development Economics, 2007, vol. 12, issue 02, pages 251-269

Abstract: The potential importance of natural resources for the livelihood of poor rural households has long been recognized but seldom quantified and analyzed. In this paper, we apply poverty and inequality measures to national and community level data sets to explore the impacts of resource extraction on rural welfare. Our findings suggest that natural resource extraction reduces both income inequality and poverty. Results from a simulation analysis at the community level indicate that poverty may be reduced, in the short-run, by increases in the price of a non-timber forest product.

Date: 2007

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Persistent link: http://EconPapers.repec.org/RePEc:cup:endeec:v:12:y:2007:i:02:p:251-269_00

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