Abstract
With the considerable growth of beef production in Brazil and the growth in beef exports as a backdrop, the main objective of this study is to identify the factors responsible for the excellent performance of this agribusiness sector. Conducting this study required the construction of a theoretical model that was capable of supporting the specification of the adjusted econometric model using vector autoregression with identification by the Bernanke process. The findings show that the main determinant of beef cattle growth and Brazilian beef exports is increased animal stock. Furthermore, productivity has a positive, albeit more modest, effect on beef production and exports. The results show that the increase of the number of cattle reduces costs to the farmer and retail beef prices.
Highlights
The general aim of this work is to identify the factors regarding the growth of beef production in Brazil
Understanding the determinants of growth of beef cattle is very importance for the economy, because it is a key sector for agribusiness Gross Domestic Product (GDP) and to generate surpluses in the trade balance
The results of the Dickey-Fuller Generalized Least Square (DF-GLS) unit root tests that are necessary for evaluating the stationarity of the series show that they are all integrated to the order of 1 - I(1) if a significance level of probability of 0.05 is considered
Summary
The general aim of this work is to identify the factors regarding the growth of beef production in Brazil. To achieve this goal, the construction of a theoretical model has been proposed to support the specification of an econometric model that makes it possible to quantify the impacts of variations in the determinants of supply and demand for beef on the volumes of this food that are produced and traded. Understanding the determinants of growth of beef cattle is very importance for the economy, because it is a key sector for agribusiness GDP and to generate surpluses in the trade balance. In the current Brazilian economy, the agribusiness sector has been instrumental in generating income and a balance of trade surplus. Gross Domestic Product (GDP), at the 2012 rate, reached the level of 433.67 billion dollars (Centro de Estudos Avançados em Economia Aplicada – CEPEA, 2013)
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