The Effect of Marketing Imperfection Variables on Production in the Context of Brazilian Agriculture

Geraldo da Silva e Souza, Eliane Gonçalves Gomes

2018

Abstract

In the context of the Brazilian agriculture it is of importance for policy makers the assessment of the effect on production of variables related to market imperfections. Market imperfection or asymmetry occurs when farmers are subjected to different market conditions depending on their size or their importance on overall state production. Relatively large rich farmers obtain lower input prices and may sell their production at lower prices making competition harder for small farmers. Market imperfections are typically associated with infrastructure, environment control requirements and the presence of technical assistance. In this article, at county level and using agricultural census data, we estimate the elasticities of these variables on production by maximum likelihood methods. We show that all these variables affect production significantly. Technological inputs dominate the production response, followed by labor and land. Environment control has a positive effect on production, as well as technical assistance. The logistics of production mostly affects technical efficiency. The proportion of forested areas has a negative elasticity. We also test technical assistance for endogeneity.

Paper Citation

in Harvard Style

da Silva e Souza G. and Gonçalves Gomes E. (2018). The Effect of Marketing Imperfection Variables on Production in the Context of Brazilian Agriculture.In Proceedings of the 7th International Conference on Operations Research and Enterprise Systems - Volume 1: ICORES, ISBN 978-989-758-285-1, pages 15-20. DOI: 10.5220/0006509300150020

in Bibtex Style

@conference{icores18,
author={Geraldo da Silva e Souza and Eliane Gonçalves Gomes},
title={The Effect of Marketing Imperfection Variables on Production in the Context of Brazilian Agriculture},
booktitle={Proceedings of the 7th International Conference on Operations Research and Enterprise Systems - Volume 1: ICORES,},
year={2018},
pages={15-20},
publisher={SciTePress},
organization={INSTICC},
doi={10.5220/0006509300150020},
isbn={978-989-758-285-1},
}

in EndNote Style

TY - CONF

JO - Proceedings of the 7th International Conference on Operations Research and Enterprise Systems - Volume 1: ICORES,
TI - The Effect of Marketing Imperfection Variables on Production in the Context of Brazilian Agriculture
SN - 978-989-758-285-1
AU - da Silva e Souza G.
AU - Gonçalves Gomes E.
PY - 2018
SP - 15
EP - 20
DO - 10.5220/0006509300150020