Trade Creation, Trade Diversion effects of NAFTA on vegetable and fruit trade flows
The present study empirically estimates and evaluates the impact of NAFTA in the vegetable and fruit trade between the USA and Mexico. The import price elasticities suggest that imports are not sensitive to price changes. However, the income elasticities of import demand vary by commodities. As expected, the vegetables and fruits exhibit strong seasonality while the import dynamics are commodity-specific. The amount of trade expansion is estimated using import price elasticities from a dynamic import demand model for the commodities. This study demonstrates that there is trade expansion attributable to NAFA in the vegetable and fruit trade. The amount of Trade Creation (TC) is greater than the amount of Trade Diversion (TD) in most commodities examined.
Volume (Year): 3 (2007)
Issue (Month): 2 ()
|Contact details of provider:|| Web page: http://www.inderscience.com/browse/index.php?journalID=173|
When requesting a correction, please mention this item's handle: RePEc:ids:wremsd:v:3:y:2007:i:2:p:142-157. 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: (Graham Langley)
If references are entirely missing, you can add them using this form.