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A partial equilibrium analysis of NAFTA's impact on U.S. bilateral trade

Author

Listed:
  • Cephas Naanwaab

    (School of Business and Economics, North Carolina A&T State University, 1601 East Market Street, Greensboro, NC 27411, USA)

  • Osei-Agyeman Yeboah

    (L.C. Cooper Jr. International Trade Center, North Carolina A&T State University, 1601 East Market Street, Greensboro, NC 27411, USA)

Abstract

This paper examines the effects of the North American Free Trade Agreement on agricultural commodity trade using extensive data. The data cover agricultural exports and imports between the U.S. and NAFTA partners over the extended period of 1989-2010. The commodities covered in the analyses include; corn, soy bean, cotton, wheat, fresh vegetables, poultry, dairy products, and red meats. A partial equilibrium model, in which we derive each trading partner's excess demand and excess supply, is used to study the impact of NAFTA on trade, controlling for other trade-inducing variables such as exchange rates, tariffs, per capita incomes, and relative prices. Regression results show mixed effects of NAFTA on different commodities while graphical and counterfactual analyses indicate strictly positive effects.

Suggested Citation

  • Cephas Naanwaab & Osei-Agyeman Yeboah, 2014. "A partial equilibrium analysis of NAFTA's impact on U.S. bilateral trade," International Journal of Business and Economic Sciences Applied Research (IJBESAR), International Hellenic University (IHU), Kavala Campus, Greece (formerly Eastern Macedonia and Thrace Institute of Technology - EMaTTech), vol. 7(1), pages 89-112, April.
    • Handle: RePEc:tei:journl:v:7:y:2014:i:1:p:89-112
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    References listed on IDEAS

    as
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    Cited by:

    1. Ioanna Apostolidou & Achilleas Kontogeorgos & Anastasios Michailidis & Efstratios Loizou, 2014. "The Role of Agriculture in Economic Growth: A Comparison of Mediterranean and Northern Views in Europe," International Journal of Business and Economic Sciences Applied Research (IJBESAR), International Hellenic University (IHU), Kavala Campus, Greece (formerly Eastern Macedonia and Thrace Institute of Technology - EMaTTech), vol. 7(3), pages 81-102, December.

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    More about this item

    Keywords

    NAFTA; Agricultural commodity trade; partial equilibrium analysis;
    All these keywords.

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F15 - International Economics - - Trade - - - Economic Integration

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