Production and business profitability in the agricultural sector of Ecuador

Abstract:

In this document, the main determinants of the profitability of companies belonging to the agricultural sector of Ecuador during the period 2007-2017 are analyzed. Data are presented indicating that productivity has a positive effect on the profitability of the companies that make up the agricultural sector, which suggests that they have a greater competitive advantage, reflected in higher levels of profits. However, the capital stock, land valuation, direct foreign investment, exports and seniority are variables that have a negative effect on profitability. Likewise, when there are improvements in GDP per capita, the profitability of companies in the agricultural sector is positively affected due to an increase in the aggregate demand for food products.

Año de publicación:

2022

Keywords:

Fuente:

scopus