The economic impact of organic production in Brazil: A study based on municipal production hotspots

The agroecological products market has increased substantially worldwide in recent decades. As a traditional agricultural country, Brazil has followed this trend and has increased the production of certified organic products in recent years. In addition, the country is one of the largest consumer markets in Latin America. This study aims to measure the effects of organic production on the economic development of municipalities through spatial analysis and econometric methodologies. Thus, it estimates the impact of organic production hotspots on the 2017 gross domestic product of Brazilian municipalities and the agriculture gross value added. The results indicate that the organic hotspots had a positive effect on both variables. Therefore, the results corroborate incentives for organic production as an alternative for the sustainable development of the agricultural sector.