Relação entre mercado de terras, crescimento econômico e insegurança fundiária explicada por um modelo a "geração imbricada" Relationship between the land market, economic growth and land insecurity explained by an overlapping model

Abstract

In this paper, we analyze the relationship between the land market failures and the economic growth in Brazil, starting from an overlapping model including two sectors: agricultural and industrial. The land is both a specific factor for agriculture and an asset that can be substituted to the capital used in industry. The trade-off between land and capital holding depends, among other factors, on the transaction costs on the land market. These costs result from land insecurity and generate a decrease in the land price that favors capital accumulation. Two assumptions follow from our model: one the one hand, land insecurity has a negative effect on the land price; one the other hand it has a positive effect on economic growth. These two hypotheses are tested on panel data for Brazilian Federation. The econometric results do not reject our hypothesis.

Keywords

• land price
• trade off capital-land
• overlapping model