Does Natural Resource Extraction Mitigate Poverty and Inequality? Evidence from Rural Mexico and a Lacadona Rainforest Community

Alejandro Lopez-Feldman, Jorge Mora and J. Edward Taylor

No 190916, Working Papers from University of California, Davis, Department of Agricultural and Resource Economics

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

Keywords: Community/Rural/Urban Development; Environmental Economics and Policy; Labor and Human Capital (search for similar items in EconPapers)
Pages: 34
Date: 2006-11
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Citations: View citations in EconPapers (2)

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Journal Article: Does natural resource extraction mitigate poverty and inequality? Evidence from rural Mexico and a Lacandona Rainforest Community (2007)
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Persistent link: https://EconPapers.repec.org/RePEc:ags:ucdavw:190916

DOI: 10.22004/ag.econ.190916

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