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Maize and the Free Trade Agreement between Mexico and the United States

Author

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  • Levy, Santiago
  • van Wijnbergen, Sweder

Abstract

Setting the price of maize in rural Mexico above the world price is inefficient and likely to have negative distributional effects because many subsistence producers, and all landless workers, are net buyers; in fact it screens out the relatively poor rather than the relatively rich. The policy objective, therefore, should be to move toward free trade. This would yield large gains in efficiency. The Free Trade Agreement provides an ideal opportunity to pursue this objective. It will provide freer entrance into the United States for other agricultural products as well as a broad range of manufactured products. Insuring secure and sustained access for labor-intensive agricultural and manufactured products can help ease the impact on the labor market of a transition away from subsistence maize cultivation. Copyright 1992 by Oxford University Press.

Suggested Citation

  • Levy, Santiago & van Wijnbergen, Sweder, 1992. "Maize and the Free Trade Agreement between Mexico and the United States," World Bank Economic Review, World Bank Group, vol. 6(3), pages 481-502, September.
  • Handle: RePEc:oup:wbecrv:v:6:y:1992:i:3:p:481-502
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    Citations

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    Cited by:

    1. de Janvry, Alain & Sadoulet, Elisabeth & de Anda, Gustavo Gordillo, 1995. "NAFTA and Mexico's maize producers," World Development, Elsevier, vol. 23(8), pages 1349-1362, August.
    2. U Pascual & R Martinez-Espineira, 2003. "Integrated Policy Options for Land Conservation and Rural Poverty Alleviation: A System-Dynamics Approach," The School of Economics Discussion Paper Series 0323, Economics, The University of Manchester.
    3. Barbier, Edward B., 2000. "Links between economic liberalization and rural resource degradation in the developing regions," Agricultural Economics of Agricultural Economists, International Association of Agricultural Economists, vol. 23(3), September.
    4. Smale, Melinda & Bellon, Mauricio R. & Gomez, Jose Alfonso Aguirre, 1999. "The Private and Public Characteristics of Maize Land Races and the Area Allocation Decisions of Farmers in a Center of Crop Diversity," Economics Working Papers 7669, CIMMYT: International Maize and Wheat Improvement Center.
    5. Petit, Michel & Gnaegy, Suzanne, 1995. "Agricultural Competitiveness and Global Trade: Looking at the Future of Agriculture Through a Crystal Ball," 1994 Conference, August 22-29, 1994, Harare, Zimbabwe 183374, International Association of Agricultural Economists.
    6. K. Doroodian & Roy Boyd, 1999. "The impact of removing corn subsidies in mexico: A general equilibrium assessment," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 27(2), pages 150-169, June.
    7. Elena Ianchovichina & Alessandro Nicita & Isidro Soloaga, 2002. "Trade Reform and Poverty: The Case of Mexico," The World Economy, Wiley Blackwell, vol. 25(7), pages 945-972, July.
    8. Avalos-Sartorio, Beatriz, 2006. "What can we learn from past price stabilization policies and market reform in Mexico?," Food Policy, Elsevier, vol. 31(4), pages 313-327, August.
    9. Bellon, Mauricio R. & Hellin, Jon, 2011. "Planting Hybrids, Keeping Landraces: Agricultural Modernization and Tradition Among Small-Scale Maize Farmers in Chiapas, Mexico," World Development, Elsevier, vol. 39(8), pages 1434-1443, August.
    10. Barbier, Edward B., 2004. "Agricultural Expansion, Resource Booms and Growth in Latin America: Implications for Long-run Economic Development," World Development, Elsevier, vol. 32(1), pages 137-157, January.
    11. Barbier, Edward B. & Burgess, J.C., 1996. "Economic analysis of deforestation in Mexico," MPRA Paper 12089, University Library of Munich, Germany.
    12. Larson, Donald F., 1993. "Policies for coping with price uncertainty for Mexican maize : policies for maize price variability in Mexico," Policy Research Working Paper Series 1120, The World Bank.

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