Analysis of the factors associated with agricultural GDP in Mexico

Abstract

Objective: To detect factors of production which can explain the total value of agricultural production (agricultural GDP) and to carry out a descriptive analysis. Methodology: A multiple linear regression adjustment and a descriptive analysis of the variables were carried out, using the available information. Results: Five variables have a significant association with agricultural GDP. In the last 20 years, the agricultural sector has experienced an exponential economic growth, with a 7.7% annual growth rate (AAGR). About 60% of the total production value is provided only by 7 states. Agricultural exports have increased from 2015, as a result of the USA demands for Mexican fruits and vegetables. Implications: The information available about the state of agriculture in Mexico makes it possible to understand trends and take actions to increase the agricultural GDP. The analysis is limited by the lack of information about many variables. Conclusions: Sown areas have decreased and the factors of production analyzed maintain a positive average annual growth rate, which indicates a process of transition from extensive crops (such as grains and cereals) to intensively exploited crops (such as fruits and vegetables). An investment aimed to generate agricultural data is needed