Social networks and economic transformation: Evidence from a resettled village in Brazil

We study the role of social learning in the diffusion of cash crops in a resettled village economy in Brazil. We combine detailed geo-coded data on farming plots with dyadic data on social ties among settlers, and we leverage the variation in network formation induced by the landless workers' m...

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Bibliographic Details
Published inJournal of economic behavior & organization Vol. 221; pp. 17 - 34
Main Authors Comola, Margherita, Inguaggiato, Carla, Mendola, Mariapia
Format Journal Article
LanguageEnglish
Published Elsevier B.V 01.05.2024
Elsevier
Subjects
Agrarian reform
Brazil
Economics and Finance
Humanities and Social Sciences
Peer effects
Social networks
Technology adoption
D85
Technology adoption
Peer effects
Q15
C45
Brazil
Social networks
O33
Agrarian reform
J15
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Summary:We study the role of social learning in the diffusion of cash crops in a resettled village economy in Brazil. We combine detailed geo-coded data on farming plots with dyadic data on social ties among settlers, and we leverage the variation in network formation induced by the landless workers' movement land occupation. By using longitudinal data on farming decisions over 15 years, we find evidence of significant peer effects in the decision to farm new cash fruits (pineapple and passion fruit). Our results suggest that social diffusion is heterogeneous along observed plot and crop characteristics, i.e. farmers growing water-sensitive crop are more likely to respond to the actions of peers with similar water access conditions.
ISSN:0167-2681
1879-1751
0167-2681
DOI:10.1016/j.jebo.2024.03.001