Analysis of the productive structure of a rural economy; relationship and effect of institutions on agricultural households in a Michoacan community

The rural household economy is characterized by a diverse network of economic activities and external connections. Income and expenditure patterns in Cofradia de San Jose are complex, generated by local productive activities and external transfers, such as remittances, government transfers, and extortion payments. The objective of this research is to describe the structural characteristics of the Cofradia de San Jose economy, its labor market, the impact of organized crime in the community, and its relationship with the outside world through the construction of a population social accounting matrix. The community is divided into agricultural (45 %), migrant (37 %), and non-agricultural (18 %) households. Institutions play an important role in the community; organized crime retains 5.4 % of the income from agricultural activities and causes the abandonment of productive activities. In 2022, agriculture, especially avocado cultivation, was fundamental to the economy, followed by commerce and services. Remittances are an important source of income, constituting 30 % of household income, and are used for family expenses, agricultural investment, and education.