Social networks and economic transformation: Evidence from a resettled village in Brazil

Margherita Comola, Carla Inguaggiato and Mariapia Mendola

Journal of Economic Behavior & Organization, 2024, vol. 221, issue C, 17-34

Abstract: We study the role of social learning in the diffusion of cash crops in a resettled village economy in Brazil. We combine detailed geo-coded data on farming plots with dyadic data on social ties among settlers, and we leverage the variation in network formation induced by the landless workers' movement land occupation. By using longitudinal data on farming decisions over 15 years, we find evidence of significant peer effects in the decision to farm new cash fruits (pineapple and passion fruit). Our results suggest that social diffusion is heterogeneous along observed plot and crop characteristics, i.e. farmers growing water-sensitive crop are more likely to respond to the actions of peers with similar water access conditions.

Keywords: Technology adoption; Agrarian reform; Social networks; Peer effects; Brazil (search for similar items in EconPapers)
JEL-codes: C45 D85 J15 O33 Q15 (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:eee:jeborg:v:221:y:2024:i:c:p:17-34

DOI: 10.1016/j.jebo.2024.03.001

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