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Agricultural trade in North America: Trade creation, regionalism and regionalisation

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  • Miljkovic, Dragan
  • Paul, Rodney

Abstract

Trade creation in agricultural products is defined as a statistically significant positive break in the trend function of the growth in exports and imports between member countries. The present study attempts to determine the time of any break in the trend of real exports and imports between the Canada–USA Free Trade Agreement (CUSTA) and the North American Free Trade Agreement (NAFTA) member countries for the years 1980:I through 1999:II, and document the scale of the phenomenon. The present study finds trade creation only occurs in USA agricultural exports to Canada because of CUSTA. The results confirm the theory that the regionalism of NAFTA did not lead to regionalisation or an increasing share of intraregional international trade.

Suggested Citation

  • Miljkovic, Dragan & Paul, Rodney, 2003. "Agricultural trade in North America: Trade creation, regionalism and regionalisation," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 47(3), pages 1-18, September.
    • Handle: RePEc:ags:aareaj:116991
    DOI: 10.22004/ag.econ.116991
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    Cited by:

    1. Malhotra Nisha & Rus Horatiu & Kassam Shinan, 2008. "Antidumping Duties in the Agriculture Sector: Trade Restricting or Trade Deflecting?," Global Economy Journal, De Gruyter, vol. 8(2), pages 1-19, June.
    2. Miljkovic, Dragan & Jin, Hyun J. & Paul, Rodney, 2008. "The role of productivity growth and farmers' income protection policies in the decline of relative farm prices in the United States," Journal of Policy Modeling, Elsevier, vol. 30(5), pages 873-885.
    3. Dragan Miljkovic, 2009. "US and Canadian livestock prices: market integration and trade dependence," Applied Economics, Taylor & Francis Journals, vol. 41(2), pages 183-193.
    4. Nguyen K. Doanh & Yoon Heo, 2009. "AFTA and Trade Diversion: An Empirical Study for Vietnam and Singapore," International Area Studies Review, Center for International Area Studies, Hankuk University of Foreign Studies, vol. 12(1), pages 163-192, March.
    5. Susanto, Dwi & Rosson, C. Parr & Adcock, Flynn J., 2007. "Trade Creation and Trade Diversion in the North American Free Trade Agreement: The Case of the Agricultural Sector," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 39(1), pages 121-134, April.
    6. Dragan Miljkovic & Silvia H. Miranda & Saleem Shaik, 2013. "Trade openness and technical efficiency in Brazilian agriculture," Applied Economics Letters, Taylor & Francis Journals, vol. 20(2), pages 103-106, February.
    7. Nie, Fei & Li, Jian & Bi, Xiang, 2020. "Agricultural Trade Liberalization and Domestic Fertilizer Use: Evidence from a Natural Experiment in China," 2020 Annual Meeting, July 26-28, Kansas City, Missouri 304213, Agricultural and Applied Economics Association.

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