Latest Issue
ISSN : 2456-8643

Title:
THE RELATIONSHIP OF PRIVATE COST (CPR) AS A MEASURE OF RURAL COMPETITIVENESS

Authors:
Rafael Rodriguez Hernandez ; Pedro Cadena Iniguez ; Mariano Morales Guerra ; Velia Sanchez Vasquez ,Mexico

Abstract:
The small farmers that operate in a production unit environment are linked in some way to the market where they place their generated products after covering their consumption, obtaining monetary income that allows them to acquire goods and services that they do not produce in their production unit. As this link strengthens, small producers can increase their income and therefore have better conditions to get out of poverty and marginalization. One way to measure this link is through the competitiveness index called Private Cost Ratio (CPR). The objective of this work was to use this indicator as a measure of the competitiveness of marginalized production units, in order to identify their positioning on the competitiveness scale and explain the reasons for such situation. Information was collected from 60 rural production units of the municipality of San Jacinto Tlacotepec, Oaxaca, Mexico through a questionnaire designed exprofeso and the procedure called income analysis was applied to obtain intermediate indicators such as Net Value Added and Cost of Internal Factors, with both Indicators CPR was obtained for each production unit. The results indicated that it is feasible to use CPR as a measure of competitiveness in rural production units and its greatest utility is that it allowed them to be classified into three categories: non-competitive, competitive and competitive. The main challenge in terms of policy towards this sector is to help UPRs in the process of competitiveness that meant 82% of the production units studied, to climb to the category of competitiveness that meant only 6%, which means that Achieve a positive Net Added Value higher than the Cost of the Internal Factors and this is only achieved by strengthening the market link, in parallel the inverse relationship between the sales and competitiveness variables was confirmed, so it was confirmed that the market is the only way to achieve increased competitiveness

Keywords:

PDF Download