The short-run and long-run effects of corruption control and political stability on forest cover

Gregmar Galinato () and Suzette Galinato ()

Ecological Economics, 2013, vol. 89, issue C, 153-161

Abstract: This article examines how governance, particularly corruption control and political stability, affects deforestation due to agricultural land expansion. We estimate the short-run and long-run effects of corruption control and political stability on deforestation in South American and Asian countries using data from 1990 to 2003 where converting forest land into agricultural land is a significant problem. Political stability has a positive and significant effect on forest cover in the short run but an insignificant effect in the long run. In contrast, corruption control has a negative and significant effect on forest cover in the short run and the long run with a larger magnitude in the former. One possible explanation is that corruption control induces more technological productivity and, if technology and land use are complements, increases in technological development lead to agricultural land expansion.

Keywords: Deforestation; Governance; Corruption; Forest cover; Political stability (search for similar items in EconPapers)
JEL-codes: O10 Q23 (search for similar items in EconPapers)
Date: 2013
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (16)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolec:v:89:y:2013:i:c:p:153-161

DOI: 10.1016/j.ecolecon.2013.02.014

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