Sample and Method Sample Clauses

Sample and Method. To carry out empirical tests, a sample comprised of confidential data of 1,180 partnership and land lease agreements between plants and landowners and landholders of the rural property was used. The data were collected by hand and refer to agreements valid in 2018. Out of the total of the agreements of the sample, an agreement was excluded because of the existence of extreme values. The variables used in the model are: a) partnership (Leasing=0, Partnership=1); b) income (amount of sugarcane per bushels traded as price); c) number of competitors in an average 50 Km radius from the plant. The Stata® software was used to perform the statistical analyses. The distribution of the variables and the correlation between them are presented in Tables 1 and 2 below: Table 1 – Distribution of the Variables The descriptive statistics shows that 94% of the sample agreements are partnership agreements and only 6% of them are land lease ones. About 22% of the lessors are legal entities and 78% of them are an individual landowners or landholders. The lowest and the highest incomes are in the range from 18 to 80 tons per bushel (alqueire). The number of competitors varies from 1 to 15 plants in an average 50 Km radius. Tale 2 – Correlation Between the Variable The analysis of Pearson correlation showed that there is positive, although little relevant, the relationship between price and partnership agreement. Moreover, it was seen that the variables number of competitors and legal entity, are negatively correlated to the partnership agreement. It is believed that the independent variables can partially explain the dependent variable. In order to do so, the Probit Regression Technique was used, based on the following model: