Evolution of the Timber Industry Along an Aging Frontier: The Case of Paragominas (1990–1995).

The timber industry of the Brazilian Amazon is changing rapidly. From a slowly evolving base of extraction in the estuary areas, the industry has expanded along an extensive road network penetrating upland forests. This research examines changes in the economic profile of timber extraction and processing in an old frontier area, the county of Paragominas in the state of Pará. As one of the earliest centers of upland logging in the Amazon, its experience after 25 years offers insights as the industry spreads to other regions in the Basin. This paper presents a theoretical model of industry evolution in frontier areas, and analyzes response to local shortages in raw material, rising international wood prices and increasingly stable property rights as the frontier matures.