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Impacts And Externalities Of Agricultural Modernization In Brazilian States

Author

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  • Costa, Caio Cesar de Medeiros
  • Reis, Paulo Ricardo da Costa
  • Ferreira, Marco Aurelio Marques

Abstract

This study aimed to analyze the relationship between the levels of agricultural modernization and socioeconomic indicators of the Brazilian federation units. A multivariate approach to data analysis led to the creation of the Index of Agricultural Modernization (IAM). The Spearman correlation test was used to verify the relationship between levels of agricultural modernization and a set of economic and social indicators. As a result of the survey, we obtained the Index of Agricultural Modernization (IAM) which allowed the ranking of Brazilian states in terms of level of modernization. The correlation analysis demonstrated the existence of significant and positive correlation between the agricultural modernization and the following indicators: per capita GDP, trade balance per capita and IFDM. This means that agricultural modernization contributes to increased production, exports and the levels of socioeconomic development of the states. For the variable urbanization rate, test results showed a negative correlation with the IAM, which suggests a contribution of agricultural modernization for fixing people in the countryside. Indicators of inequality in income distribution showed no significant correlation. In conclusion, it can be inferred that the positive relationship of the IAM with indicators of production, exports and socioeconomic development shows the presence of positive externalities and impacts of the agricultural modernization process for the Brazilian states.

Suggested Citation

  • Costa, Caio Cesar de Medeiros & Reis, Paulo Ricardo da Costa & Ferreira, Marco Aurelio Marques, 2012. "Impacts And Externalities Of Agricultural Modernization In Brazilian States," APSTRACT: Applied Studies in Agribusiness and Commerce, AGRIMBA, vol. 6(3-4), pages 1-10, November.
    • Handle: RePEc:ags:apstra:138128
    DOI: 10.22004/ag.econ.138128
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    References listed on IDEAS

    as
    1. Ramachandran, V. K., 1991. "Wage Labour and Unfreedom in Agriculture: An Indian Case Study," OUP Catalogue, Oxford University Press, number 9780198286479.
    2. Lohmar, Bryan & Gale, H. Frederick, Jr. & Tuan, Francis C. & Hansen, James M., 2009. "China's Ongoing Agricultural Modernization: Challenges Remain After 30 Years of Reform," Economic Information Bulletin 58316, United States Department of Agriculture, Economic Research Service.
    3. Nicholson, Norman K, 1984. "Landholding, Agricultural Modernization, and Local Institutions in India," Economic Development and Cultural Change, University of Chicago Press, vol. 32(3), pages 569-592, April.
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