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The Effect of NAFTA on Mexican Agricultural Exports to the United States: The Case of Coffee Beans, 1970-2003

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Author Info

  • Mario M. Carrillo-Huerta

    (Universidad de las Americas-Puebla)

  • Israel Minor Bonilla

    (Universidad de las Americas-Puebla)

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    Abstract

    Since its implementation in 1994, NAFTA's impacts on trade have been extensively and positively evaluated at an aggregate level, but not so much at a regional or sectorial level. Through time series analysis, this paper studies NAFTA's impact on Mexican exports of coffee beans to the U.S. The study shows a NAFTA's positive, although short-lasting effect (for two-three years) on the studied variable, mainly because the international market of coffee beans used to function on a quota system, thus preventing Mexico from capitalizing (and furthering) on the comparative advantage derived from its location, close to the U.S. market.

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    Bibliographic Info

    Article provided by Pepperdine University, Graziadio School of Business and Management in its journal Journal of Entrepreneurial Finance and Business Ventures.

    Volume (Year): 10 (2005)
    Issue (Month): 2 (Summer)
    Pages: 76-93

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    Handle: RePEc:pep:journl:v:10:y:2005:i:2:p:76-93

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    Related research

    Keywords: NAFTA; Mexico; Exports; Agriculture;

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    1. Malaga, Jaime E. & Williams, Gary W. & Fuller, Stephen W., 2001. "US-Mexico fresh vegetable trade: the effects of trade liberalization and economic growth," Agricultural Economics, Blackwell, vol. 26(1), pages 45-55, October.
    2. Graham Elliott & Thomas J. Rothenberg & James H. Stock, 1992. "Efficient Tests for an Autoregressive Unit Root," NBER Technical Working Papers 0130, National Bureau of Economic Research, Inc.
    3. Johansen, Soren, 1988. "Statistical analysis of cointegration vectors," Journal of Economic Dynamics and Control, Elsevier, vol. 12(2-3), pages 231-254.
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