Transition problems in economic reform : agriculture in the Mexico - U.S. free trade agreement
AbstractThe authors use Mexican agriculture as a case study to analyze the transition problems that arise in most major economic reforms. They focus on the implications for policy design of the absence of efficient capital markets; on the welfare costs of reforming only gradually; on incentive problems created by trade adjustment policies; and on the redistribution aspects of policy reform in the presence of realistic limits on available intervention instruments. They emphasize that adjustment should focus on increasing the value of assets owned by the groups affected, and not on direct income transfers of programs targeted to output or other characteristics controlled by the beneficiaries. That is, they contend that adjustment should betargeted to improving what people have, as opposed to what people do.
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Bibliographic InfoPaper provided by The World Bank in its series Policy Research Working Paper Series with number 967.
Date of creation: 31 Aug 1992
Date of revision:
Environmental Economics&Policies; Economic Theory&Research; Banks&Banking Reform; Drylands&Desertification; Agricultural Research;
Other versions of this item:
- Levy, Santiago & van Wijnbergen, Sweder, 1992. "Transition Problems in Economic Reform: Agriculture in the Mexico-US Free Trade Agreement," CEPR Discussion Papers 624, C.E.P.R. Discussion Papers.
- F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
- F15 - International Economics - - Trade - - - Economic Integration
- Q17 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agriculture in International Trade
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CEP Discussion Papers
dp0177, Centre for Economic Performance, LSE.
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