An Empirical Approach Analyzing the Socioeconomic Sustainability of the International Sugarcane Trade

Abstract

The rapport between international trade and income inequality came to light after the Heckscher–Ohlin/Stolper–Samuelson theorem (HOS). Nevertheless, researchers have not concluded whether the HOS theory truly reflects reality. Even though the main focus provided by the HOS theory is on internal inequality (existing inside the country among its population), another way of analyzing the HOS theory is through income inequality among countries. This last possibility is also called income convergence. This work contributes to the topic of researching the relationship between the export of sugarcane-derived products and income to verify the income convergence effect. The cultivation of sugarcane is a relevant activity for many developing countries, including Brazil. In addition, no developed country is listed among the eight biggest sugarcane producers, which indicates that as a developing country product, it would be possible to analyze the relationship among the variables in a broader sense. The results obtained in the research indicate that the impact of the export of sugarcane products on income is minimal. Although positive, it is only perceived over time. Due to the characteristics of this research, which involves performing an analysis involving green production, green energy, and income inequality, this study is related to the seventh, eighth, and tenth United Nations’ SDG goals.

The Impact of Sugarcane By-Product Exports on Income Inequality: How Sustainable Is This Relationship?

“…Concerning the sugarcane-international trade relationship, Table 2 results confirm Machado and DA CRUZ's [37] results and, consequently, are not in line with Quin's [38] findings. Nevertheless, following Machado and DA CRUZ [37], this may be credited to the low export values of the region.…”

“…Concerning the sugarcane-international trade relationship, Table 2 results confirm Machado and DA CRUZ's [37] results and, consequently, are not in line with Quin's [38] findings. Nevertheless, following Machado and DA CRUZ [37], this may be credited to the low export values of the region. This would explain the similarities of the presented results with Machado and DA CRUZ [37] and the different results from Quin [38], who analyzed the first impact of liberalization in the Guangxi region, which may have represented a cumulative impact on the people' income.…”

“…Nevertheless, following Machado and DA CRUZ [37], this may be credited to the low export values of the region. This would explain the similarities of the presented results with Machado and DA CRUZ [37] and the different results from Quin [38], who analyzed the first impact of liberalization in the Guangxi region, which may have represented a cumulative impact on the people' income. However, it would be necessary to repeat Quin's [38] study with newer data to confirm this hypothesis.…”

“…Nevertheless, the social impact of sugarcane international trade is uncertain. Machado and DA CRUZ [37] present a study indicating that sugarcane by-product export does not exert a positive effect on the average income of the Goiás state (Brazil). Quin [38], in turn, asserts that China's liberalization police and consequently access to international markets have positively impacted sugar prices but have a negative impact on farmer costs and profit in Guangxi Province.…”

Life Cycle Assessment of the Sugarcane Supply Chain in the Brazilian Midwest Region

“…Santoro, Soler, and Cherri [21] argue that sugarcane cultivation is essential for many countries' economies, especially Brazil. Machado and Da Cruz [22] present a list of the significant sugarcane producer countries and show that Brazil is the largest sugarcane producer in the world. According to the Brazilian National Supply Company (CONAB) [23], the sugarcane industry has been relevant to Brazil since the colonial period.…”