Competitiveness in Michoacán: A Proposal for an International Positions in Agroindustrial Sector

Odette V Delfin-Ortega,Joel Bonales Valencia

doi:10.5539/jas.v7n2p106

Odette V Delfin-Ortega, Joel Bonales Valencia

Open Access

https://doi.org/10.5539/jas.v7n2p106

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Abstract

The present research has as aim, to determine the ways in which are affected the quality, the price, the technological innovation, the environmental management, the market and the public agro industrial policies in the international competitiveness of the agro industrial sector of Michoacan. It was located 51 agroindustrial companies that are exporting. It was used as instrument of compilation of information a questionnaire composed of 80 items. Once the information was processed, it was determined the correlational analysis, linear regression and attempts at hypothesis. We can see with the results that the state is competitive in this sector and that the variables explain 97% of the competitiveness. The variable that determined the competitiveness with greater proportion was the technological innovation, so it requires public policies that strengthen this indicator and the sector can be even more competitive. In the other hand public polices in agro business got the lowest score and there is a gap in the implementation of programs and modernization in the sector that causes both nationally and internationally doesn´t be strong in the area of agribusiness Michoacan, so it must strengthen these policies from the national development plan.

Highlights

Agriculture is a vulnerable sector in Mexico and in Michoacan state, so its development represents an economic and social balance
This research is based on the assumption that the dependent variable competitiveness is impacted by independent variables: quality, technological innovation, environmental management, pricing, market and public policy
Michoacan currently requires a big push to grow as a state and be more competitive, the agricultural sector has been a central axis within the same economic boost, in fruit and vegetable products, which is much currently positioned in international markets

Summary

Introduction

Agriculture is a vulnerable sector in Mexico and in Michoacan state, so its development represents an economic and social balance. To the extent that quality, price, technological innovation, environmental management, market and public policy impact on the competitive development of the state; agribusiness firms will be more profitable and the industry is constantly growing. Productivity growth is a major element of sustained competitiveness and is largely linked to the adoption of new technologies or other innovations (Toming, 2010; OECD, 2011). Market forces directly influence in export supply and the agricultural sector is one such example through technological development and has been able to improve their different phases of production and industrialization (Ball et al, 2006; Latruffe, 2010). Food and Agriculture Organization (FAO) says that “the industrialization of agriculture and agribusiness development is a common process that is creating an entirely new type of industrial sector” (FAO, 2014)

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