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Social Rates of Return and Other Aspects of Agricultural Research: The Case of Cotton Research in São Paulo, Brazil

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  • Harry W. Ayer
  • G. Edward Schuh

Abstract

Economic impacts of investments in cotton seed research and development in São Paulo, Brazil, are estimated. The internal rate of return to Brazilian society is estimated to have been approximately 90 percent. The effect on export earnings was large, and consumers benefited via a decrease in the price and an increase in the quantity of cotton cloth. Of total net benefits producers captured about 60 percent and consumers 40 percent. Landowners and managers received the largest share of producer benefits. Laborers benefited through an increase in employment, but wage rates were not raised. Policy implications are given.

Suggested Citation

  • Harry W. Ayer & G. Edward Schuh, 1972. "Social Rates of Return and Other Aspects of Agricultural Research: The Case of Cotton Research in São Paulo, Brazil," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 54(4_Part_1), pages 557-569.
    • Handle: RePEc:oup:ajagec:v:54:y:1972:i:4_part_1:p:557-569.
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