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The Effect of NAFTA on Mexican Agricultural Exports to the United States: The Case of Coffee Beans, 1970-2003

Author

Listed:
  • Mario M. Carrillo-Huerta

    (Universidad de las Americas-Puebla)

  • Israel Minor Bonilla

    (Universidad de las Americas-Puebla)

Abstract

Since its implementation in 1994, NAFTA's impacts on trade have been extensively and positively evaluated at an aggregate level, but not so much at a regional or sectorial level. Through time series analysis, this paper studies NAFTA's impact on Mexican exports of coffee beans to the U.S. The study shows a NAFTA's positive, although short-lasting effect (for two-three years) on the studied variable, mainly because the international market of coffee beans used to function on a quota system, thus preventing Mexico from capitalizing (and furthering) on the comparative advantage derived from its location, close to the U.S. market.

Suggested Citation

  • Mario M. Carrillo-Huerta & Israel Minor Bonilla, 2005. "The Effect of NAFTA on Mexican Agricultural Exports to the United States: The Case of Coffee Beans, 1970-2003," Journal of Entrepreneurial Finance, Pepperdine University, Graziadio School of Business and Management, vol. 10(2), pages 76-93, Summer.
  • Handle: RePEc:pep:journl:v:10:y:2005:i:2:p:76-93
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    References listed on IDEAS

    as
    1. Elliott, Graham & Rothenberg, Thomas J & Stock, James H, 1996. "Efficient Tests for an Autoregressive Unit Root," Econometrica, Econometric Society, vol. 64(4), pages 813-836, July.
    2. Johansen, Soren, 1988. "Statistical analysis of cointegration vectors," Journal of Economic Dynamics and Control, Elsevier, vol. 12(2-3), pages 231-254.
    3. Malaga, Jaime E. & Williams, Gary W. & Fuller, Stephen W., 2001. "US-Mexico fresh vegetable trade: the effects of trade liberalization and economic growth," Agricultural Economics, Blackwell, vol. 26(1), pages 45-55, October.
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    More about this item

    Keywords

    NAFTA; Mexico; Exports; Agriculture;
    All these keywords.

    JEL classification:

    • O54 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Latin America; Caribbean
    • Q17 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agriculture in International Trade

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