Market Access and Agricultural Diversification: An Analysis of Brazilian Municipalities

Bruno Benzaquen Perosa, Ramon Felipe Bicudo da Silva and Mateus Batistella ()
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Bruno Benzaquen Perosa: Institute of Economics and International Relations, Federal University of Uberlandia, Uberlandia 38405-314, Brazil
Ramon Felipe Bicudo da Silva: Núcleo de Estudos e Pesquisas Ambientais, Universidade Estadual de Campinas, Campinas 13083-867, Brazil
Mateus Batistella: Núcleo de Estudos e Pesquisas Ambientais, Universidade Estadual de Campinas, Campinas 13083-867, Brazil

Land, 2024, vol. 13, issue 1, 1-13

Abstract: Market access has a deep impact on farmers’ decisions, influencing their choice of crops and technology adoption. Crop diversification depends on the availability of markets to trade the agricultural portfolio. This study explored how market access impacted the level of diversification in 5565 Brazilian municipalities from 2013 to 2021. We developed a regression model considering how variables related to market access and commercialization (storage, roads, distribution centers, commercialization credit, among others) affected a local (municipality level) diversification index. After environmental variables were controlled, the results indicated that most of the market access variables have a significant impact on diversification. We also used map analysis to analyze the regional patterns of specialization in Brazilian agriculture, concluding that logistics and commercialization infrastructure have strong influence on the level of diversification in Brazil, a major agricultural powerhouse in the world. The results indicate that market access variables affect diversification and should be considered by policy makers aiming to increase sustainability in agriculture and livestock.

Keywords: spatial econometrics; public farm credit; agribusiness; specialization patterns; logistics (search for similar items in EconPapers)
JEL-codes: Q15 Q2 Q24 Q28 Q5 R14 R52 (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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