Dual analysis of the behavior of the primary sector in Mexico 1980-2020
DOI:
https://doi.org/10.29312/remexca.v11i5.1819Keywords:
Allen-Uzawa elasticities, dual function, input demandAbstract
The present investigation analyzed the productive activity of the primary sector in Mexico during the period 1980-2016, with prediction towards 2020. A translog cost function was used to estimate the demands of the inputs: labor, machinery, nitrogen fertilizers and credit of development banking. Prices and quantities of each of the inputs and of the primary gross domestic product were considered in 2013 real base values. The Allen-Uzawa elasticities were calculated, the four inputs were inelastic, with labor being the most important in the cost structure, representing 52.7%. Tractors and fertilizers were complementary to labor, the credit from the development bank showed a substitution relationship with the other inputs, indicating that the interest rates charged are high and cause the producer to decrease the demand for credit. Primary activity requires increases in tractors, fertilizers and labor of at least 2.8, 2.3 and 2.2%, respectively, by 2020.
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