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.