Factors that Impact the Market of Agricultural Tractors in Mexico

• Salas-Gutiérrez, José Cupertino ^[1] ; Mora-Flores, José Saturnino ^[1] ; García-Salazar, José Alberto ^[1] ; Garduño-García, Ángel ^[2]
  1. [1] Colegio de Postgraduados

     Colegio de Postgraduados

     México

     
  2. [2] Universidad Autónoma Chapingo

     Universidad Autónoma Chapingo

     México

     
• Localización: Agro Productividad, ISSN-e 2594-0252, Vol. 17, Nº. 9, 2024 (Ejemplar dedicado a: Septiembre), págs. 11-19
• Idioma: inglés
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• Resumen

  • Objective: To determine the main factors that impact the market of agricultural tractors in Mexico.Design/Methodology/Approach: Time series data from 2000 to 2020 were used to estimate two nationalscale models for agricultural tractors: one for supply and the other for demand.Results: The results suggest that, in the long run, the supply and demand for agricultural tractors have an inelastic responsiveness to price changes, with a 0.079 and -0.083 elasticity, respectively.Study Limitations/Implications: The main limitation is the lack of official data on the historical prices, sales, and production of tractor units in recent years. Consequently, estimates must be employed.Findings/Conclusions: In addition to the price factor, producer income and interest rate affect demand, with elasticities of 0.178 and -0.002, respectively. Consequently, the government should implement the necessary measures, such as improving income and maintaining low interest rates, to encourage the demand for tractors in Mexico.