Profitability of landowners Dourados/MS sugarcane industries in the tenancy before the locational specificity

Abstract

The objective of this study is to investigate the influence of locational specificity in the profitability of agricultural tenancy to produce sugarcane in Dourados / MS. To this end, we used the Transaction Cost Economics with a focus on locational specificity. Data were collected from the landowners of the town in July and August 2011. Data analysis was performed with hypothesis testing by econometric OLS for the preparation of Sample Regression Function. It appears that the locational specificity explains more than 89% of the profitability of these leases, showing inverse relationship between distance and profitability.