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Structural reforms and price liberalization in Mexican agriculture

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  • John Baffes

    (The World Bank, Washington, DC, USA)

Abstract

This paper shows that the policy changes introduced by the Mexican Government in the mid-1980s induced a reduction in the profits of the crop subsector. A simple simulation exercise revealed that, under price liberalization of the four crops studied, the demand for agricultural labour will decline by 6 per cent (equivalent to about 360,000 agricultural workers); the supply of maize is expected to decline by about 11 per cent while the corresponding declines of wheat, sorghum, and beans will be 22, 13, and 5 percent, respectively. The use of fertilizer is also expected to decline to two thirds of its current use. © 1998 John Wiley & Sons, Ltd.

Suggested Citation

  • John Baffes, 1998. "Structural reforms and price liberalization in Mexican agriculture," Journal of International Development, John Wiley & Sons, Ltd., vol. 10(5), pages 575-587.
    • Handle: RePEc:wly:jintdv:v:10:y:1998:i:5:p:575-587
    DOI: 10.1002/(SICI)1099-1328(199807/08)10:5<575::AID-JID430>3.0.CO;2-L
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    References listed on IDEAS

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    Cited by:

    1. Eakin, Hallie, 2005. "Institutional change, climate risk, and rural vulnerability: Cases from Central Mexico," World Development, Elsevier, vol. 33(11), pages 1923-1938, November.
    2. John Baffes & Bruce Gardner, 2003. "The transmission of world commodity prices to domestic markets under policy reforms in developing countries," Journal of Economic Policy Reform, Taylor & Francis Journals, vol. 6(3), pages 159-180.
    3. Hallie Eakin & Hugo Perales & Kirsten Appendini & Stuart Sweeney, 2014. "Selling Maize in Mexico: The Persistence of Peasant Farming in an Era of Global Markets," Development and Change, International Institute of Social Studies, vol. 45(1), pages 133-155, January.

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