Interaction between agricultural monetary support and poverty in the states with the highest agricultural production in Mexico (2020): a spatial econometric approach

Abstract

Several studies have documented the relationship between poverty and monetary support for the countryside. However, the literature that incorporates the territorial dimension of such variables is still scarce. The objective of this work is to explore the possible territorial interaction between the agricultural monetary support of the Production for Wellbeing program, aimed at agricultural producers, and poverty at the municipal level in the states with the highest agricultural production, Chiapas, Guerrero, Jalisco, Michoacán, Oaxaca, Puebla, Veracruz and Zacatecas. For this, the neighborhood spatial autoregressive model (SAR) is used. Based on Moran's I test, empirical evidence is found that in the states of Chiapas, Guerrero, Jalisco, Michoacán, Oaxaca, Puebla, Veracruz and Zacatecas the distribution of poverty and monetary support to agricultural producers has a significant spatial interaction. For the states of Jalisco and Michoacán it is observed that the estimated effect of the distribution of poverty and support is not significant, although the relationship is regressive and progressive, respectively. Since resource allocations to the program are channeled in fixed amounts to an established list of producers, SAR models are estimated independently by state. For states where the coefficients are not significant, a redesign of public policy with a territorial approach is suggested that promotes the Mexican agri-food system and at the same time reduces poverty by increasing food production.