The Impact of Institutional and Land Use Change on Local Incomes in Chilean Patagonia

Arnold Behrer, Dale Manning and Andrew Seidl

Journal of Development Studies, 2019, vol. 55, issue 2, 191-208

Abstract: Many developing rural economies depend on natural capital stocks for generating income and wealth. However, common property natural resources are often over-exploited. One method of solving over-exploitation is privatisation of the resource. In Palena, Chile, the privatisation of common-property grazing land facilitated a change in land use from grazing to tourism activities. We present a theoretical model that demonstrates that privatisation that leads to land use change has the potential to increase local wages. To resolve theoretical ambiguities, we calibrate a local general equilibrium model and find that privatisation and a switch to tourism resulted in higher wages in the local economy of Palena. This finding contributes to the ongoing investigation of the local costs and benefits of resource privatisation in developing countries.

Date: 2019
References: Add references at CitEc
Citations:

Downloads: (external link)
http://hdl.handle.net/10.1080/00220388.2017.1385766 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:taf:jdevst:v:55:y:2019:i:2:p:191-208

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/FJDS20

DOI: 10.1080/00220388.2017.1385766

Access Statistics for this article

Journal of Development Studies is currently edited by Howard White, Oliver Morrissey and Ken Shadlen

More articles in Journal of Development Studies from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().