Forest product footprint convergence in the Amazon: A panel data analysis of ACTO countries

Abstract

This study examines the convergence of forest product footprints (FPF) among seven Amazon Cooperation Treaty Organization (ACTO) countries from 1961 to 2022. The research investigates whether FPF levels are converging or diverging across these nations, which share the Amazon rainforest. Employing a panel unit root test that accounts for smooth and sharp structural breaks, the study identifies both convergence and divergence patterns. Colombia, Ecuador, and Guyana show evidence of convergence, potentially driven by conservation policies and indigenous land management. Conversely, Brazil and Peru demonstrate divergence, likely influenced by extensive agriculture, mining, and international trade in forest products. The findings emphasize the need for coordinated regional policies within ACTO to foster sustainable forest management practices, address divergent national interests, and prioritize environmental conservation in the Amazon.