Resumo

BAUTISTA MAYORGA, Fidel  e  REYES SANTIAGO, Ester. Production Costs Effect on the Orange Market in Veracruz, 1980-2018. Región y sociedad [online]. 2020, vol.32, e1294.  Epub 27-Jan-2021. ISSN 2448-4849.  https://doi.org/10.22198/rys2020/32/1294.

The purpose of this article is to determine the factors that affect the orange market in Veracruz and to analyze the effects of production costs on that market. The methodology used the estimation of simultaneous equations model, with annual data from 1980 to 2018. Results show that production costs should not increase, because the rise causes negative effects on the orange market. The conclusion leads to recommend the federal government’s fertilizer program expansion to more crops, such as citrus. Another recommendation is to ask for a moderate minimum wage increase, inasmuch as it will encourage positive effects on the market to increase production and rural average price.

Palavras-chave : production costs; orange market; simultaneous equations; fertilizer program; Veracruz.

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