Main Article Content
Keywords
Abstract
Objective: Analyze the behavior of the agricultural sector during the period 1993-2022, as well as investment in Mexican agriculture, to identify the factors that have contributed the most to the economic growth of the sector.
Design/methodology/approach: The Ordinary Least Squares Method (OLS) was used in two stages. Subsequently, the corresponding elasticities (E) were obtained for each of the variables included in the analysis.
Results: The results indicate that both the growth of agricultural GDP and the 91-day CETES interest rate significantly influence FDI. However, the results suggest that FDI has a limited impact on agricultural GDP growth, since a 1% increase in FDI only causes a marginal increase in the sector's GDP. On the other hand, Gross Fixed Capital Formation shows a positive and significant effect.
Limitations on study/implications: The lack of data complicated the development of the model, since there were multiple variables that could have explained the behavior of investment and economic growth in the agricultural sector.
Findings/conclusions: Gross fixed capital formation (GFCF) is crucial for the growth of agricultural GDP. However, the lag in investment in infrastructure and machinery continues to be a challenge for the agricultural sector in Mexico, limiting its ability to grow at a faster pace. Increasing investment could create an environment that benefits both the sector and the national economy.