Explaining Agricultural Expansion, Resource Booms and Growth in Latin America

The following paper examines the main factors determining long-run agricultural land expansion in Latin America compared to other tropical regions. Given the importance of natural resource-based sectors for most economies in Latin America, the impact of price-induced "resource booms" on economic growth in the region is explored. In addition, the paper examines whether there is an inherent "boom and bust" pattern of economic development associated with agricultural land expansion in Latin America, and the extent to which economic policies in the region exacerbate this problem. The paper concludes by examining the role of targeted policies in alleviating the structural obstacles to Latin American agricultural and economic development.