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Bundled contracts and technological diffusion

Evidence from the Brazilian soybean boom

Bibliographic Data

ID11889323
AuthorsGuilherme DePaula (0000-0002-3696-4907, Iowa State University, corresponding author)
Year2023
Volume165
Pages103163-103163
Publication date2023-08-01
Peer ReviewedYes
Open AccessYes
TypeARTICLE
VenueJournal of Development Economics (JOURNAL)
Journal identifiersISSN: 0304-3878 • E-ISSN: 1872-6089
PublisherElsevier BV (PUBLISHER)
DOI10.1016/j.jdeveco.2023.103163
OpenAlexW4385448374
LanguageEN
References cited32

Technological change in the 1970s and 1980s made it possible to grow soybeans in the remote Brazilian Savanna. However, multiple constraints typical of a developing region prevented many ranchers from adopting soybeans. Following the macroeconomic reforms that opened up the market in Brazil, international traders introduced a new farmer–trader contract that bundled technology, finance, inputs, and market access. The analysis of a novel panel dataset with farm-level census data reveals that this bundled contract led to rapid technological diffusion, agricultural expansion, and a 10-fold increase in agricultural productivity by enabling the conversion of marginal land into commercial soybean plantations

Agricultural economics · Agriculture · Boom · Business · Contract farming · Econometrics · Economic growth · Economics · Geography · Macroeconomics · Panel data · Production (economics · Productivity · Technological change · Agricultural Innovations and Practices · Agriculture, Land Use, Rural Development · Environmental Science · Land Rights and Reforms

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