Will developing country debt forgiveness increase agricultural trade?
Latin American countries are important customers in international agricultural trade. However, between 1981 and 1987, U.S. agricultural exports to these countries declined by almost 50%. One explanation for the above decrease is the change in financial conditions facing many countries in this region. Outstanding debt in the Latin American countries continued to rise through the 1980's, reaching over $120 billion for Brazil and Mexico by 1987. In this paper, we develop an import model which considers the effect of the debt crisis on the ability of developing countries to purchase agricultural commodities in world markets. We estimate the model for four countries: Mexico, Brazil, Chile, and Venezuela. The estimated results are used in a simulation model to obtain the effects of a 50% debt forgiveness scenario. Results indicate only a modest improvement in agricultural imports of the four Latin American countries considered in this study. These four countries would expand agricultural imports by $400 million per annum given the debt reduction.
(This abstract was borrowed from another version of this item.)
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Houthakker, Hendrik S & Magee, Stephen P, 1969. "Income and Price Elasticities in World Trade," The Review of Economics and Statistics, MIT Press, vol. 51(2), pages 111-25, May.
- Roningen, Vernon O. & Dixit, Praveen M., 1990. "Assessing the implications of freer agricultural trade," Food Policy, Elsevier, vol. 15(1), pages 67-75, February.
- Orlando, Frank & Teitel, Simon, 1986. "Latin America's External Debt Problem: Debt-Servicing Strategies Compatible with Long-term Economic Growth," Economic Development and Cultural Change, University of Chicago Press, vol. 34(3), pages 641-71, April.
- Goldstein, Morris & Khan, Mohsin S, 1978. "The Supply and Demand for Exports: A Simultaneous Approach," The Review of Economics and Statistics, MIT Press, vol. 60(2), pages 275-86, May.
- Bahmani-Oskooee, Mohsen, 1986. "Determinants of international trade flows : The Case of Developing Countries," Journal of Development Economics, Elsevier, vol. 20(1), pages 107-123.
When requesting a correction, please mention this item's handle: RePEc:eee:agecon:v:8:y:1993:i:2:p:91-105. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei)
If references are entirely missing, you can add them using this form.