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Mexican agricultural trade under the GATT

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Author Info
Salvator Nkunzimana
H. Alan Love
C. Richard Shumway
Abstract

Expected effects from partially lifting tariff barriers on the Mexican agricultural sector are investigated using a restricted profit function (RPF) approach. Short-run and intermediate-run effects of the implementation of GATT minimum tariff provisions on Mexican agricultural trade are examined. Specification tests reveal the appropriateness of the RPF approach, that exports should not be aggregated with non-traded production into a single output, and that the farm sector behaves as an 'almost' price-taking, profit-maximizing firm. Policy simulations suggest important short-run changes in agricultural trade and chemical use and intermediate-run changes in agricultural trade, labour wage, chemical use, capital investments, and net farm income.

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Article provided by Taylor and Francis Journals in its journal Applied Economics.

Volume (Year): 35 (2003)
Issue (Month): 4 (January)
Pages: 449-459
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Handle: RePEc:taf:applec:v:35:y:2003:i:4:p:449-459

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

  1. C. Richard Shumway & H. Alan Love & Juan J. Porras, 2001. "Measuring the effectiveness of non-price export promotion using a supply-side approach," Empirical Economics, Springer, vol. 26(2), pages 367-389. [Downloadable!] (restricted)
  2. Moran, Cristian & Serra, Pablo, 1993. "Trade reform under regional integration : Policy simulations using a CGE model for Guatemala," Journal of Development Economics, Elsevier, vol. 40(1), pages 103-132, February. [Downloadable!] (restricted)
  3. Gopinath, Munisamy & Roe, Terry L., 1996. "Sources Of Growth In U.S. Gdp And Economy-Wide Linkages To The Agricultural Sector," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 21(02), December. [Downloadable!]
  4. Kohli, Ulrich, 1993. "A Symmetric Normalized Quadratic GNP Function and the U.S. Demand for Imports and Supply of Exports," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 34(1), pages 243-55, February. [Downloadable!] (restricted)
  5. Burgess, David F., 1974. "Production theory and the derived demand for imports," Journal of International Economics, Elsevier, vol. 4(2), pages 103-117, May. [Downloadable!] (restricted)
  6. Williams, Shon P & Shumway, C Richard, 1998. "Aggregation of Data and Profit Maximization in Mexican Agriculture," Applied Economics, Taylor and Francis Journals, vol. 30(2), pages 235-44, February. [Downloadable!] (restricted)
  7. Devarajan, Shantayanan & Rodrik, Dani, 1991. "Pro-competitive effects of trade reform : Results from a CGE model of Cameroon," European Economic Review, Elsevier, vol. 35(5), pages 1157-1184, July. [Downloadable!] (restricted)
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  8. Pesaran, M Hashem & Pierse, Richard G & Kumar, Mohan S, 1989. "Econometric Analysis of Aggregation in the Context of Linear Prediction Models," Econometrica, Econometric Society, vol. 57(4), pages 861-88, July. [Downloadable!] (restricted)
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  9. Levy, Santiago & van Wijnbergen, Sweder, 1995. "Transition Problems in Economic Reform: Agriculture in the North American Free Trade Agreement," American Economic Review, American Economic Association, vol. 85(4), pages 738-54, September. [Downloadable!] (restricted)
  10. Lau, Lawrence J., 1978. "Applications of Profit Functions," Histoy of Economic Thought Chapters, in: Fuss, Melvyn & McFadden, Daniel (ed.), Production Economics: A Dual Approach to Theory and Applications, volume 1, chapter 3 McMaster University Archive for the History of Economic Thought. [Downloadable!]
  11. Hausman, Jerry A, 1978. "Specification Tests in Econometrics," Econometrica, Econometric Society, vol. 46(6), pages 1251-71, November. [Downloadable!] (restricted)
  12. Lawrence, Denis, 1990. "An adjustment-costs model of export supply and import demand," Journal of Econometrics, Elsevier, vol. 46(3), pages 381-398, December. [Downloadable!] (restricted)
  13. Kohli, Ulrich, 1990. "Price and quantity elasticities in U.S. foreign trade," Economics Letters, Elsevier, vol. 33(3), pages 277-281, July. [Downloadable!] (restricted)
  14. Beghin, John & Dessus, Sebastien & Roland-Holst, David & van der Mensbrugghe, Dominique, 1997. "The trade and environment nexus in Mexican agriculture. A general equilibrium analysis," Agricultural Economics, Blackwell, vol. 17(2-3), pages 115-131, December. [Downloadable!] (restricted)
  15. Ulrich R. Kohli, 1978. "A Gross National Product Function and the Derived Demand for Imports and Supply of Exports," Canadian Journal of Economics, Canadian Economics Association, vol. 11(2), pages 167-82, May. [Downloadable!] (restricted)
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(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Doan, Darcie & Goldstein, Andrew & Zahniser, Steven & Vollrath, Tomm & Bolling, Chris, 2004. "North American Integration In Agriculture: A Survey Paper," North American Agrifood Integration: Situation and Perspectives, May 2004, Cancun, Mexico 16730, Farm Foundation. [Downloadable!]
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