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The Effect of Protection and Exchange Rate Policies on Agricultural Trade: Implications for Argentina, Brazil, and Mexico

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  • Krissoff, Barry
  • Ballenger, Nicole

Abstract

The impacts of reducing both agricultural and nonagricultural protection on the agricultural sector are assessed with emphasis placed on Argentina, Brazil, and Mexico. By modeling simultaneously all goods sectors of the economy in a multi-country framework, we evaluate the importance of (1) the relative rates of protection between sectors and (2) exchange rate adjustments that follow trade liberalization in a world of floating rates. We find substantial improvements in net agricultural trade for Argentina and Brazil, particularly following a multilateral trade and exchange rate liberalization. Additionally, the value of gross domestic product improves for all three countries following multilateral liberalization suggesting that these countries experience gains in standard of living from lower world protection.

Suggested Citation

  • Krissoff, Barry & Ballenger, Nicole, 1987. "The Effect of Protection and Exchange Rate Policies on Agricultural Trade: Implications for Argentina, Brazil, and Mexico," Working Papers 51820, International Agricultural Trade Research Consortium.
    • Handle: RePEc:ags:iatrwp:51820
    DOI: 10.22004/ag.econ.51820
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    File URL: https://ageconsearch.umn.edu/record/51820/files/87-4.pdf
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    Citations

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    Cited by:

    1. Haley, Stephen L., 1990. "Measuring the Effectiveness of the Export Enhancement Program for Poultry," Staff Reports 278276, United States Department of Agriculture, Economic Research Service.
    2. Schwartz, Nancy E. & Krissoff, Barry, 1987. "How Strategies to Reduce U.S. Bilateral Trade Deficits in Manufactures Affect U.S. Agricultural Exports," Staff Reports 324727, United States Department of Agriculture, Economic Research Service.
    3. Harrington, Thomas Barth, Jr., 1989. "The impact of decoupling on Iowa feed grain producers," ISU General Staff Papers 1989010108000017596, Iowa State University, Department of Economics.
    4. Bryant, Elizabeth & Yumkella, Kandeh K., 1993. "Mexican Agricultural Policies and NAFTA: Implications for U.S. - Mexican Bean Trade," Staff Paper Series 201175, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    5. Schwartz, Nancy E. & Krissoff, Barry, 1989. "Unbalancing Act: Strategies for Trade in Manufactures and Agricultural Trade Impacts," 1989 Occasional Paper Series No. 5 197667, International Association of Agricultural Economists.
    6. Krissoff, Barry & Ballenger, Nicole, 1987. "Trade Liberalization With Endogenous Exchange Rates," 1987 Annual Meeting, August 2-5, East Lansing, Michigan 269953, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).

    More about this item

    Keywords

    International Relations/Trade;

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