Spatial Econometrics Applied to Study the Influencing Factors of Honey Prices in Brazil

Abstract

Recently, empirical econometric research has started to take into account the potential bias and loss of efficiency when spatial effects are ignored in the estimation process. The spatial econometrics methods deals with this kind of problem, by incorporating the spatial dependence into model specification. The application of this methodology has wide use, including rural economy, as apiculture. Currently, brazilian beekeeping is undergoing an expressive growth, projecting the country through the honey production and other bee products as well. Although, beekeeping sector has faced some important problems to reduce the deficits that strongly influence the beekeeping chain. Important issues are related to market, especially to understand the factors that influence the honey prices. This study aims to identify socio-economic, technological, management and geographic factors that have influenced the honey prices in Brazil. The analyses were based on classical linear and spatial econometrics regression models. In order to measure spatial dependence the Moran’s Index was applied and the stepAIC and Nagelkerke Pseudo-R² approaches to select the most appropriate model. The best model identified factors linked to improper agricultural practices, access to fund, honey production level, market competition and educational level as target variables that influence the honey prices in Brazil. Keywords: Econometrics, Spatial analysis, Beekeeping, Honey market, Price.