How do national markets and price policies affect land use at the forest margin? Evidence from the Philippines

Agricultural growth in uplands of tropical developing countries is associated with deforestation , land degradation, and diminished watershed function. Using time-series price data from an upland Philippine watershed we examine market integration and quantify product market links through which policy and macro-economic shocks-including instability from the Asian financial crisis of 1997-98-are transmitted to farm gate prices. If market-driven incentives dominate farmers' decision, then our results indicate the desirability of using a broader range of policy instruments to address upland problems, and the need for upland projects to devote increased attention to national-level information dissemination and policy advocacy.