An economic analysis of the agricultural development potential for Southern Honduras

Abstract

The study was conducted in the Valle and Choluteca Districts of Southern Honduras in 1974. The objectives of the study were (1) to identify input-output relationships for selected crops; (2) determine current and potential productivity estimates for various resources r which would provide guidance for making investment decisions; and (3) to derive policy recommendations for the purpose of agricultural development in Southern Honduras. A survey of 449 randomly selected sample farms, including 686 observations (fields) was conducted. The observations were stratified by soil topography types to include mountain, hills, terrace and delta soils. Corn classifications of the sample farms on the basis of technology and education were made also. Technology levels included traditional, semi-traditional and non-traditional; while education included illiterates and literate categories.The various soil-technology and soil-education classes were analyzed by means of multiple regression with a stepwise format. Model I regressed yields of selected crops on typical production function variables only. Model II regressed yields on typical production variables together with soil and climatic variables. Throughout the study the minimum error variance criterion was used to determine the variables to be included in the estimating equations.