Socioeconomic impact of soybean crop in the minimum comparable areas of Brazil

Abstract

This article evaluated the effect of soybean cultivation on the level of socioeconomic development and economic growth of the Brazilian AMC’s (Minimum Comparable Areas), between the years 1991 and 2010. For this, the models Differences in Differences with Propensity Score were estimated. (DDM), evaluating the impact of “being a soybean producer” on the Gross Domestic Product (GDP) per capita and on the dimensions of the Municipal Human Development Index (HDI-M). The results showed that soybean production did not impact the global HDI-M, with a positive effect only on the HDI – knowledge. In the case of the longevity dimension, a negative impact was identified, possibly due to the intensive use of pesticides, which affects the health of rural workers and residents of nearby locations. In the case of economic growth, the effect was positive, inferring that “being a soy-producing AMC” tends, on average, to intensify GDP per capita.