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The Economics of Desertification, Land Degradation, and Drought

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Figure 2.21—Relationship between GDP <strong>and</strong> NDVI<br />

Source: Author’s compilation based on simulation results.<br />

Consistent with expectations, the correlation analysis showed that in most regions, government<br />

effectiveness is positively correlated with NDVI. It was negative only in the EU <strong>and</strong> North America,<br />

which is largely due to a decrease in government effectiveness during the period under review<br />

accompanied by an increase in NDVI in both regions (Figure.22).<br />

Figure 2.22—Relationship between government effectiveness <strong>and</strong> NDVI<br />

Source: Author’s compilation based on simulation results.<br />

With the exception <strong>of</strong> the EU, North America, Oceania, <strong>and</strong> SSA, the correlation between<br />

agricultural intensification (proxied by fertilizer application) <strong>and</strong> NDVI is positive as expected (Table<br />

2.8). <strong>The</strong> EU, North America, <strong>and</strong> Oceania have seen a decrease in fertilizer application (Figure 2.23),<br />

which could explain the apparent negative correlation with NDVI. In SSA, l<strong>and</strong> conversion to agriculture<br />

is responsible for the declining NDVI.<br />

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