Impact of the rural credit policy on the agricultural supply and input demand within the macroregions of Brazil

• Grant number: 14/18842-0
• Support Opportunities: Scholarships abroad - Research
• Start date: January 05, 2015
• End date: January 04, 2016
• Field of knowledge: Applied Social Sciences - Economics - Agrarian and Natural Resource Economics
• Principal Investigator: Eduardo Rodrigues de Castro
• Grantee: Eduardo Rodrigues de Castro
• Host Investigator: Marc Leon Nerlove
• Host Institution: Centro de Ciências e Tecnologias para a Sustentabilidade (CCTS). Universidade Federal de São Carlos (UFSCAR). Sorocaba , SP, Brazil
• Institution abroad: University of Maryland, College Park, United States

Abstract

The Brazilian agricultural sector has had great advances in technology use, which has increased the sector productivity and has allowed the expansion of the agricultural frontier. Given the big extension of the agricultural areas in the country, there are structural differences among the main producer regions. Besides, despite the rural credit distribution follows the region participation on gross product value of the sector, it might be uneven distributed when considering more disaggregate levels, which might influence the response to the policy. The question this research aims to answer is how would be the impact of the rural credit policy on the grain's agricultural supply and input demand, taking in account the regional differences that exist in Brazil. It's based on the duality applied to the theory of the firm, and uses a translog multi-output, multi-input model to estimate the impact of the total expenditure on the agricultural supply and input demand. It is used data for the Brazilian states for the period of 2001 to 2012 and county data from the Agricultural Census from 1995/96 and 2006. (AU)