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Utilises a number of situations observed in tropical Asia to motivate a simple trade-theoretical analysis of the implications of technological progress in agriculture. The models used recognise the factor and commodity market linkages between agriculture, forestry and other sectors in the economy, which serve as conduits through which technological progress and other changes in one sector transmit their influences throughout the economy.The author focusses on a few issues to shed light on some of the main mechanisms through which technological progress in agricultural sectors has an impact on deforestation. In particular the author concludes that the impact of technological progress in agriculture on forestry depends crucially on the degree to which agriculture that experiences such technological change directly competes with forestry for land. Thus, productivity improvements in crops such as rubber, tea, oil-palm or coffee, which are likely to compete for forested land, will aggravate deforestation while the Green Revolution in wet rice agriculture may have had a significant pro-forestry effect. However, the effect of low prices for food produced in the lowlands may not always be benign: lower food prices raise incomes and can stimulate demand for upland products, which may lead to increased deforestation.[author] To view full documents on mekonginfo requires registration (free).
