ANALYSIS OF THE FACTORS THAT DEFINE THE GROWTH OF THE AGRICULTURAL SECTOR IN MEXICO

Abstract

The interaction between productive factors is primordial for an adequate agricultural growth, and the primary factors considered are land, work and capital; however, the new schools of economic growth also consider the adoption of technology and educational level of the population as key elements in economic growth. This research studies the factors mentioned and their influence on the variations of the gross domestic product for the 1979-2010 period in México’s agricultural sector. The results obtained through a Cobb-Douglas production function indicated that the variables irrigation surface, economically active population, and application of fertilizers with elasticities of 2.42, -3.11 and 0.28, respectively, are the ones that explained 90 % of the variations in the agricultural GDP. Labor in the agricultural sector is the variable that affects negatively and requires policies to increase its productivity.