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North American tomato market: a spatial equilibrium perspective

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  • Ramon Guajardo
  • Homero Elizondo

Abstract

This paper studies the North American tomato market in a world market perspective. For this purpose a spatial equilibrium model with endogenous prices is constructed and solved by quadratic mathematical programming method. Six scenarios involving the impacts from transportation costs, tariffs, and North American Free Trade Agreement (NAFTA) were modelled. The solutions illustrate their impacts on production, consumption, trade flows, prices, and net social welfare. Due to NAFTA, Mexico became the main tomato exporter to the USA.

Suggested Citation

  • Ramon Guajardo & Homero Elizondo, 2003. "North American tomato market: a spatial equilibrium perspective," Applied Economics, Taylor & Francis Journals, vol. 35(3), pages 315-322.
  • Handle: RePEc:taf:applec:v:35:y:2003:i:3:p:315-322
    DOI: 10.1080/00036840110101438
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    References listed on IDEAS

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    1. Carl H. Nelson & Bruce A. McCarl, 1984. "Including Imperfect Competition in Spatial Equilibrium Models," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 32(1), pages 55-70, March.
    2. Tsunemasa Kawaguchi & Nobuhiro Suzuki & Harry M. Kaiser, 1997. "A Spatial Equilibrium Model for Imperfectly Competitive Milk Markets," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 79(3), pages 851-859.
    3. Kennedy, P. Lynn & Atici, Cemal, 1998. "A Sectoral Analysis of Agricultural Trade Liberalization," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 30(02), pages 277-284, December.
    4. Kennedy, P. Lynn & Atici, Cemal, 1998. "A Sectoral Analysis Of Agricultural Trade Liberalization," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 30(02), December.
    5. Wigle, R.M., 1991. "Transportation Costs in Regional Models of Foreign Trade: An Application to Canada-U.S. Trade," Working Papers 91142, Wilfrid Laurier University, Department of Economics.
    6. Kennedy, P. Lynn & Hughes, Karol W., 1998. "Welfare Effects Of Agricultural Trading Blocs: The Simulation Of A North American Customs Union," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 23(01), July.
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    Citations

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    Cited by:

    1. Stephen Devadoss & Prasanna Sridharan & Thomas Wahl, 2009. "Effects of Trade Barriers on U.S. and World Apple Markets," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 57(1), pages 55-73, March.
    2. Stephen Devadoss & Angel Aguiar, 2006. "Effects of global trade liberalization on softwood lumber markets," Applied Economics, Taylor & Francis Journals, vol. 38(20), pages 2351-2360.
    3. Lee, Jun & Gomez, Miguel I., 2011. "Impact of CO2 Emission Policies on Food Supply Chain: Application to the U.S. Apple Sector," 2011 Annual Meeting, July 24-26, 2011, Pittsburgh, Pennsylvania 103813, Agricultural and Applied Economics Association.
    4. Jansson, Torbjorn, 2005. "Two Ways of Estimating a Transport Model," Discussion Papers 18787, University of Bonn, Institute for Food and Resource Economics.
    5. Jansson, Torbjorn, 2005. "Two ways of estimating a transport model," 2005 Annual meeting, July 24-27, Providence, RI 19473, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    6. Ramón G. Guajardo Quiroga & Pedro A. Villezca Becerra, 2004. "Impacto de la apertura comercial de México y de su integración en bloques comerciales en el mercado mundial del limón," Estudios Económicos, El Colegio de México, Centro de Estudios Económicos, vol. 19(1), pages 61-92.
    7. Jansson, Torbjörn & Heckelei, Thomas, 2009. "A new estimator for trade costs and its small sample properties," Economic Modelling, Elsevier, vol. 26(2), pages 489-498, March.
    8. Torbjorn Jansson, "undated". "Estimating Prices and Excess Demand and Trade Costs in a Spatial Price Equilibrium Model," Regional and Urban Modeling 283600040, EcoMod.
    9. Kosse, Elijah & Devadoss, Stephen, 2016. "Welfare Analysis of the U.S.-Mexican Tomato Suspension Agreement," 2017 Annual Meeting, February 4-7, 2017, Mobile, Alabama 252726, Southern Agricultural Economics Association.

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