| Chile's open trade policy, implemented during the last few decades, has greatly transformed Chilean farmers and their production systems. As a result, farmers can be grouped into three categories based on their market-production orientation: domestic, transitional or export producers. The objective of this paper is to analyze the factors underlying the decision to produce for a particular market and compare the three groups of farmers based on data from the 2007 agricultural census. A generalized ordered logit model was used to analyze different methods of production, and non-parametric methods were used to compare the groups. Results show that some farmers change categories in sequence; farmers that produce for the domestic market can later produce for... |
