The economic consequences of the agricultural expansion in Matopiba

Abstract

This paper examines the consequences of the agricultural expansion in the Matopiba- areas from the states of Maranhão, Tocantins, Piauí and Bahia located in the Cerrado biome. Comparing municipalities from these four states located inside and outside the Cerrado biome, it finds that agricultural production evolved similarly in these groups of municipalities until the late 1990s when it started to increase faster in municipalities inside the Cerrado. The growth in agricultural production led to increases in GDP per capita and access to durable goods and basic infrastructure.