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Convergence Clubs in the Brazilian Beef Market

Author

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  • Eucinete de Menezes Albuquerque
  • Francisco Jose Silva Tabosa
  • Pablo Urano de Carvalho Castelar
  • Nicolino Trompieri Neto
  • Ahmad Saeed Khan
  • Jair Andrade de Araujo
  • Laura Cunha Rebou?as Lessa
  • Erika Costa Sousa

Abstract

The share of livestock in the Gross Domestic Product (GDP) of Brazilian agribusiness has considerable relevance in the country's economy. Specifically, the work tests the hypothesis of convergence and/or formation of price convergence clubs in each state, taking into account the possible technological differences existing among Brazil¡¯s different regions. Data from 12 Brazilian states, from 2004 to 2021, is used. The methodology is the time series analysis, as featured in Phillips & Sul (2007). In club convergence, it is observed that in economies with similar initial conditions and identical structural characteristics, prices converge to the same long-term level. And, in this specific case, it was possible to identify only one convergence club, where all states follow the same pattern.

Suggested Citation

  • Eucinete de Menezes Albuquerque & Francisco Jose Silva Tabosa & Pablo Urano de Carvalho Castelar & Nicolino Trompieri Neto & Ahmad Saeed Khan & Jair Andrade de Araujo & Laura Cunha Rebou?as Lessa & Er, 2022. "Convergence Clubs in the Brazilian Beef Market," International Journal of Business Administration, International Journal of Business Administration, Sciedu Press, vol. 13(6), pages 79-89, November.
    • Handle: RePEc:jfr:ijba11:v:13:y:2022:i:6:p:79-89
    DOI: 10.5430/ijba.v13n6p79
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