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NAFTA intra-industry trade in agricultural food products

  • Bashir A. Qasmi

    (Economics Department, South Dakota State University, Brookings, SD 57007-0895)

  • Scott W. Fausti

    (Economics Department, South Dakota State University, Brookings, SD 57007-0895)

This paper focuses on NAFTA's impact on intra-industry and inter-industry trade in agricultural food products. Bilateral trade among the United States, Canada, and Mexico and their trade with the rest of the world during 1990 and 1995 are investigated. The study shows that U.S. trade patterns for agricultural food products are slowly changing. The proportion of the intra-industry trade was higher for food products involving a greater degree of processing, whereas trade in bulk commodities with little or no processing was predominantly inter-industry. U.S.-Canada bilateral trade has been increasingly more dominated by intra-industry trade. On the other hand, Mexican bilateral trade with both the United States and Canada has been predominantly inter-industry in nature. The study also indicated a decline in the proportion of intra-industry trade in U.S. trade with the rest of the world during this period. [EconLit citations: F120, F190]. © 2001 John Wiley & Sons, Inc.

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File URL: http://hdl.handle.net/10.1002/agr.1015
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Article provided by John Wiley & Sons, Ltd. in its journal Agribusiness.

Volume (Year): 17 (2001)
Issue (Month): 2 ()
Pages: 255-271

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Handle: RePEc:wly:agribz:v:17:y:2001:i:2:p:255-271
Contact details of provider: Web page: http://onlinelibrary.wiley.com/journal/10.1002/(ISSN)1520-6297

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  1. Falvey, Rodney E., 1981. "Commercial policy and intra-industry trade," Journal of International Economics, Elsevier, vol. 11(4), pages 495-511, November.
  2. Helpman, Elhanan, 1981. "International trade in the presence of product differentiation, economies of scale and monopolistic competition : A Chamberlin-Heckscher-Ohlin approach," Journal of International Economics, Elsevier, vol. 11(3), pages 305-340, August.
  3. Lancaster, Kelvin, 1980. "Intra-industry trade under perfect monopolistic competition," Journal of International Economics, Elsevier, vol. 10(2), pages 151-175, May.
  4. James Brander & Paul Krugman, 1982. "A 'Reciprocal Dumping' Model of International Trade," Working Papers 513, Queen's University, Department of Economics.
  5. Krugman, Paul, 1980. "Scale Economies, Product Differentiation, and the Pattern of Trade," American Economic Review, American Economic Association, vol. 70(5), pages 950-59, December.
  6. Greenaway, David & Milner, Chris, 1984. "A cross section analysis of intra-industry trade in the U.K," European Economic Review, Elsevier, vol. 25(3), pages 319-344, August.
  7. Krugman, Paul R., 1979. "Increasing returns, monopolistic competition, and international trade," Journal of International Economics, Elsevier, vol. 9(4), pages 469-479, November.
  8. H. Gray, 1973. "Two-Way international trade in manufactures: A theoretical underpinning," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 109(1), pages 19-39, March.
  9. Klein, Lawrence R. & Salvatore, Dominick, 1995. "Welfare effects of the North American free trade agreement," Journal of Policy Modeling, Elsevier, vol. 17(2), pages 163-176, April.
  10. Glejser, H. & Goossens, K. & Vanden Eede, M., 1982. "Inter-industry versus intra-industry specialization in exports and imports (1959-1970-1973)," Journal of International Economics, Elsevier, vol. 12(3-4), pages 363-369, May.
  11. Roberts, Donna, 1995. "Intra-Industry Trade In Agricultural Products In The Western Hemisphere: Preliminary Evidence And Implications For Economic Integration," Working Papers 51219, International Agricultural Trade Research Consortium.
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