Path Analysis and Correlation of Influential Socioeconomic Factors in the Production of Sugarcane

Abstract

The analysis of the economic viability of agriculture and sugar cane is necessary to understand the techniques of measuring the financial return on the activities of rural establishments. The authors aimed to examine the direct and indirect associations of socioeconomic factors on the benefit/cost index in sugarcane activity and their significant correlations. The methodological approach of research was quantitative, applying statistical techniques of inferential and multivariate analysis (path analysis) under statistical significance (P<0.05). A model of path diagram was developed that presented a structural adjustment of quality, obtaining relevant R2 (0.74). The analysis showed that the characteristics of the successors of the farms impact on the economic factors of the productive system of the sugar cane. There was a total association between the successor's vocation and the benefit/cost index, presenting a substantial path coefficient (-0.90), in which the direct and indirect effect (51% and 49%) was inversely proportional and had a significant impact (P<0.05). A total association between the successor's practical ability and the benefit/cost index was obtained, which presented a strong and directly proportional path coefficient (0.70). In the dynamics of the socioeconomic factors of the sugarcane productive system, the influence of social variables on the economic result is expressive, and the indirect effects impact in a manner similar to the direct ones, as evidenced by the analysis of the benefit/cost, implying the adoption of actions that prepare the successors for agricultural management and for the management of agribusiness.