The article discusses how economic factors and agricultural development drive tropical deforestation. It reviews studies on land use changes in tropical forests and finds that income and institutional factors play a significant role. The research shows that agricultural expansion is the main reason for deforestation, but other factors also contribute. Income effects vary by region and do not always follow a specific pattern. Recent studies focus on the behavior of agricultural households and other agents in tropical forest countries. More research is needed at the country and local levels to understand deforestation better.