Sustainability and Competitiveness of Mexican Rose Production for Export: A Policy Analysis Matrix Approach Assessing Economic and Social Dimensions

Abstract

The agricultural economic policy in Mexico has inadequately addressed the integrated sustainability needs of the rural sector. This study adopts a sustainability perspective to examine economic policy distortions and market failures in the export-oriented rose cultivation sector, and evaluates their effects on the economic and social sustainability of producers in Tenancingo and Villa Guerrero, Mexico. A Policy Analysis Matrix (PAM) and CONEVAL poverty line metrics were used to evaluate private and social profitability as indicators of financial viability and resource use efficiency. Findings indicate that, despite being supported by distortionary policies, the rose export sector remains competitive and financially viable, constituting a key pillar of economic sustainability. Moreover, the social profitability of rose production exceeded its private profitability, suggesting a net positive socioeconomic benefit and a sustainable allocation of resources from a societal perspective. Furthermore, per capita income in the rose production unit (RPU) exceeded the poverty line established by CONEVAL, directly supporting social sustainability and strengthening livelihood resilience. The study concludes that current resource allocation mechanisms are inefficient for sustainability over the long term. It emphasizes the need for policy shifts toward greater innovation, more effective technology transfer, improved market access, and stronger human capital to strengthen the sustainability of the sector as a whole. Rose cultivation exhibited a significant positive multiplier effect on the regional economy, reinforcing its contribution to sustainable rural development.