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The Seasonal and Spatial Dimensions of Sorghum Market Liberalization in Mexico

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  • E. Leigh Bivings

Abstract

Mexico's attempt to deregulate its sorghum market in 1990 was unsuccessful because policy analysts failed to consider the seasonal and spatial dimensions of trade. In this paper I present a detailed, seasonal, and spatially dissaggregated nonlinear programming model of the Mexican sorghum market calibrated with survey data of storage and transport costs in Mexico, and compare the results obtained with models that ignore these characteristics. The comparison demonstrates that the failure to incorporate these costs in trade models may lead to misleading conclusions and inappropriate policies. Copyright 1997, Oxford University Press.

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  • E. Leigh Bivings, 1997. "The Seasonal and Spatial Dimensions of Sorghum Market Liberalization in Mexico," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 79(2), pages 383-393.
  • Handle: RePEc:oup:ajagec:v:79:y:1997:i:2:p:383-393
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    File URL: http://hdl.handle.net/10.2307/1244137
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    Cited by:

    1. Arndt, Channing & Schiller, Rico & Tarp, Finn, 2001. "Grain transport and rural credit in Mozambique: solving the space-time problem," Agricultural Economics, Blackwell, vol. 25(1), pages 59-70, June.
    2. Ruijs, Arjan & Schweigman, Caspar & Lutz, Clemens, 2004. "The impact of transport- and transaction-cost reductions on food markets in developing countries: evidence for tempered expectations for Burkina Faso," Agricultural Economics, Blackwell, vol. 31(2-3), pages 219-228, December.
    3. Walkenhorst, P., 2000. "Handelsliberalisierung, abgeleitete Produktnachfrage und die Wettbewerbsfähigkeit der Agrarwirtschaft," Proceedings “Schriften der Gesellschaft für Wirtschafts- und Sozialwissenschaften des Landbaues e.V.”, German Association of Agricultural Economists (GEWISOLA), vol. 36.
    4. Ruijs, Arjan & Schweigman, Caspar & Lutz, Clemens, 2003. "The Impact Of Transport- And Transaction-Cost Reductions On Food Markets In Developing Countries: Evidence For Tempered Expectations For Burkina Faso," 2003 Annual Meeting, August 16-22, 2003, Durban, South Africa 25866, International Association of Agricultural Economists.
    5. Arndt, Channing & Schiller, Rico, 1998. "Storage of Maize in Mozambique Under Dualistic Credit Markets: A spatial and Temporal Analysis," MPRA Paper 63236, University Library of Munich, Germany.
    6. Suzuki, Aya & Sexton, Richard J., 2005. "Transportation Cost and Market Power of Middlemen: A Spatial Analysis of Agricultural Commodity Markets in Developing Countries," 2005 Annual meeting, July 24-27, Providence, RI 19329, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    7. Arndt, Channing & Schiller, Rico & Philipsen, Annelotte, 1998. "Maize Markets And Rural Storage In Mozambique: A Spatial And Temporal Analysis," 1998 Annual meeting, August 2-5, Salt Lake City, UT 20991, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).

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