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Structural reforms and price liberalization in Mexican agriculture

  • John Baffes

    (The World Bank, Washington, DC, USA)

This paper shows that the policy changes introduced by the Mexican Government in the mid-1980s induced a reduction in the profits of the crop subsector. A simple simulation exercise revealed that, under price liberalization of the four crops studied, the demand for agricultural labour will decline by 6 per cent (equivalent to about 360,000 agricultural workers); the supply of maize is expected to decline by about 11 per cent while the corresponding declines of wheat, sorghum, and beans will be 22, 13, and 5 percent, respectively. The use of fertilizer is also expected to decline to two thirds of its current use. © 1998 John Wiley & Sons, Ltd.

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Article provided by John Wiley & Sons, Ltd. in its journal Journal of International Development.

Volume (Year): 10 (1998)
Issue (Month): 5 ()
Pages: 575-587

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Handle: RePEc:wly:jintdv:v:10:y:1998:i:5:p:575-587
Contact details of provider: Web page: http://www3.interscience.wiley.com/journal/5102/home

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  1. Baffes, John & Gautam, Madhur, 1996. "Price Responsiveness, Efficiency, and the Impact of Structural Adjustment on Egyptian Crop Producers," World Development, Elsevier, vol. 24(4), pages 765-771, April.
  2. Shumway, C. Richard & Jegasothy, Kandiah & Alexander, William P., 1987. "Production Interrelationships In Sri Lankan Peasant Agriculture," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 31(01), April.
  3. Christensen, Laurits R & Jorgenson, Dale W & Lau, Lawrence J, 1973. "Transcendental Logarithmic Production Frontiers," The Review of Economics and Statistics, MIT Press, vol. 55(1), pages 28-45, February.
  4. O'Mara, Gerald T & Ingco, Merlinda, 1990. "MEXAGMKTS : a model of crop and livestock markets in Mexico," Policy Research Working Paper Series 446, The World Bank.
  5. Thijssen, Geert, 1992. "Supply Response and Input Demand of Dutch Dairy Farms," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 19(2), pages 219-35.
  6. Anderson, James E. & Bannister, Geoffrey, 1992. "The trade restrictiveness index : an application to Mexican agriculture," Policy Research Working Paper Series 874, The World Bank.
  7. repec:cup:cbooks:9780521351058 is not listed on IDEAS
  8. Lopez, Ramon & Nash, John & Stanton, Julie, 1995. "Adjustment and poverty in Mexican agriculture : how farmers'wealth affects supply response," Policy Research Working Paper Series 1494, The World Bank.
  9. Lucas, Robert Jr, 1976. "Econometric policy evaluation: A critique," Carnegie-Rochester Conference Series on Public Policy, Elsevier, vol. 1(1), pages 19-46, January.
  10. Levy, Santiago & Wijnbergen, Sweder van, 1994. "Labor markets, migration and welfare Agriculture in the North-American Free Trade Agreement," Journal of Development Economics, Elsevier, vol. 43(2), pages 263-278, April.
  11. Burfisher, Mary & Robinson, Sherman & Thierfelder, Karen, 1992. "Agricultural and food policies in a United States-Mexico free trade area," The North American Journal of Economics and Finance, Elsevier, vol. 3(2), pages 117-139.
  12. Boyce, James K, 1986. "Kinked Exponential Models for Growth Rate Estimation," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 48(4), pages 385-91, November.
  13. Gallant, A. Ronald & Jorgenson, Dale W., 1979. "Statistical inference for a system of simultaneous, non-linear, implicit equations in the context of instrumental variable estimation," Journal of Econometrics, Elsevier, vol. 11(2-3), pages 275-302.
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