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Implications of U.S. Trade Agreements and U.S. Nutrition Policies for Produce Production, Demand, and Trade

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  • Palma, Marco A.
  • Ribera, Luis A.
  • Bessler, David

Abstract

This study used aggregated data for fresh vegetables and fresh fruits to analyze how trade flows in the fresh produce industry have changed under trade agreements and to assess the potential implications to nutrition policies in the United States. The first part of the analysis uses a Bai-Perron test to endogenously determine any structural break points in vegetable and fruit trade movements and prices. Directed acyclic graphs and historical decompositions are used to establish causal patterns on innovations from vector autoregression models fitted to annual observations of trade flows, prices, and income. The results showed that trade agreements have had significant impacts to the produce industry. Income was a major determinant of domestic fruit production and imports.

Suggested Citation

  • Palma, Marco A. & Ribera, Luis A. & Bessler, David, 2013. "Implications of U.S. Trade Agreements and U.S. Nutrition Policies for Produce Production, Demand, and Trade," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 45(3), pages 465-480, August.
    • Handle: RePEc:cup:jagaec:v:45:y:2013:i:03:p:465-480_00
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    References listed on IDEAS

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    1. David A. Bessler & Derya G. Akleman, 1998. "Farm Prices, Retail Prices, and Directed Graphs: Results for Pork and Beef," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 80(5), pages 1144-1149.
    2. Palma, Marco A. & Ribera, Luis A. & Bessler, David A. & Paggi, Mechel S. & Knutson, Ronald D., 2010. "Potential Impacts of Foodborne Illness Incidences on Market Movements and Prices of Fresh Produce in the U.S," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 42(4), pages 1-11, November.
    3. Ribera, Luis A. & Yue, Chengyan & Holcomb, Rodney B., 2012. "Geographic Impacts on U.S. Agriculture of the 2010 Dietary Nutrition Guidelines," Choices: The Magazine of Food, Farm, and Resource Issues, Agricultural and Applied Economics Association, vol. 27(1), pages 1-8.
    4. Ferrier, Peyton Michael & Zhen, Chen, 2011. "Habit Effects and Producer Welfare in the Fresh Vegetable Trade," 2011 Annual Meeting, July 24-26, 2011, Pittsburgh, Pennsylvania 103286, Agricultural and Applied Economics Association.
    5. Dong, Diansheng & Lin, Biing-Hwan, 2009. "Fruit and Vegetable Consumption by Low-Income Americans: Would a Price Reduction Make a Difference?," Economic Research Report 55835, United States Department of Agriculture, Economic Research Service.
    6. Hoover, Kevin D., 2005. "Automatic Inference Of The Contemporaneous Causal Order Of A System Of Equations," Econometric Theory, Cambridge University Press, vol. 21(1), pages 69-77, February.
    7. Palma, Marco A. & Jetter, Karen M., 2012. "Will the 2010 Dietary Guidelines for Americans be Any More Effective for Consumers?," Choices: The Magazine of Food, Farm, and Resource Issues, Agricultural and Applied Economics Association, vol. 27(1), pages 1-9.
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    1. Fonsah, Esendugue G. & Awondo, Sebastain Nde, 2013. "Discussion: Future Domestic and International Competitiveness of the Southern Fruit and Vegetable Industry," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 45(3), pages 481-484, August.

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    JEL classification:

    • Q13 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Markets and Marketing; Cooperatives; Agribusiness

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