Abstract:
This study assesses how technological, organizational, transportation, and infrastructure improvements can contribute to reducing differences in competitiveness in terms of the production levels, income, and well-being of fruit growers. For this purpose, an applied model of general spatial equilibrium was used. The results of simulations of transfer cost reductions and technological change indicated increases in production and price reductions in regions benefiting from them, generating competitiveness gains. In all the scenarios analyzed, well-being levels followed the direction of the change in income, but their percentage changes were much smaller than those seen in income, indicating that a considerable portion of income growth was absorbed by the variation in prices.
Keywords:
spatial price formation; irrigated fruit culture; Ceará