Developing Countries and the Gains from Regionalism: Links between Trade and Farm Policy Reforms in Mexico
We use a multi-country computable general equilibrium (CGE) model with agricultural policy details to simulate the effects of North American Free Trade Agreement (NAFTA). We find that Mexico gains from NAFTA only when it also removes domestic distortions in agriculture. In that case, agriculture can...
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| Veröffentlicht in: | American journal of agricultural economics 2002-08, Vol.84 (3), p.736-748 |
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| container_end_page | 748 |
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| container_issue | 3 |
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| container_title | American journal of agricultural economics |
| container_volume | 84 |
| creator | Burfisher, Mary E. Robinson, Sherman Thierfelder, Karen |
| description | We use a multi-country computable general equilibrium (CGE) model with agricultural policy details to simulate the effects of North American Free Trade Agreement (NAFTA). We find that Mexico gains from NAFTA only when it also removes domestic distortions in agriculture. In that case, agriculture can generate allocative efficiency gains large enough to offset the terms of trade losses that arise because Mexico has higher initial tariffs than its NAFTA partners. When an RTA forces a developing country to reform its domestic distortions that are linked to trade restrictions, it becomes a building block toward multilateralism. |
| doi_str_mv | 10.1111/1467-8276.00331 |
| format | Article |
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When an RTA forces a developing country to reform its domestic distortions that are linked to trade restrictions, it becomes a building block toward multilateralism.</description><subject>Agricultural economics</subject><subject>Agricultural policy</subject><subject>agricultural reforms</subject><subject>Agriculture</subject><subject>commercial policies</subject><subject>computable general equilibrium (CGE) model</subject><subject>Costs</subject><subject>Developing countries</subject><subject>Domestic trade</subject><subject>Economics</subject><subject>Efficiency</subject><subject>Equilibrium</subject><subject>F150</subject><subject>Farm exports</subject><subject>Farms</subject><subject>Free trade</subject><subject>Imports</subject><subject>International trade</subject><subject>LDCs</subject><subject>Mexico</subject><subject>Multilateralism</subject><subject>NAFTA</subject><subject>North American Free Trade Agreement</subject><subject>O130</subject><subject>O190</subject><subject>O240</subject><subject>protection</subject><subject>Q170</subject><subject>Q180</subject><subject>Reform</subject><subject>Reforms</subject><subject>Regionalism</subject><subject>Suppliers</subject><subject>Tariffs</subject><subject>Terms of trade</subject><subject>Trade</subject><subject>Trade development</subject><subject>Trade liberalization</subject><subject>Trade policy</subject><subject>Trade restrictions</subject><issn>0002-9092</issn><issn>1467-8276</issn><fulltext>true</fulltext><rsrctype>article</rsrctype><creationdate>2002</creationdate><recordtype>article</recordtype><recordid>eNqFkM9v0zAcxS0EEmXbmQsHiwMHpGz-lTjhgNSVdWXqRAVDQrtYbvLNcJfYxU7Y-t_PWcYQCAlfLL_3ed-v_BB6SckhjeeIikwmOZPZISGc0ydo8qg8RRNCCEsKUrDn6EUIm_gktMgnaPMBfkLjtsZe4ZnrbecNBKxthbvvgE-1sQHX3rX4M1wZZ3VjQvsOL429DngN3Q2AxRdeV3CfmWvf4pVrTLmLgdr5NmBj8TncmtLto2e1bgIcPNx76Ov85GK2SJafTj_OpsukFILQJCUc8nW5ZoJAVnNYy0LrkrI807SqQeoqg1xK4FBrWUJVgBCMpLzgGcmzivM99Gacu_XuRw-hU60JJTSNtuD6oHhB05QKGsHXf4Eb1_v4x6BYbFCmlJEIHY1Q6V0IHmq19abVfqcoUUPxaqhZDTWr--Jj4v2YuDEN7P6Hq-nZ9GTQBunXgLfjANdv_xlP_tj2aoQ3oXP-N86EyEUe7WS0Tejg9tHW_lplkstULb5dqgWdr-SX40u14neaCqs8</recordid><startdate>200208</startdate><enddate>200208</enddate><creator>Burfisher, Mary E.</creator><creator>Robinson, Sherman</creator><creator>Thierfelder, Karen</creator><general>Oxford University Press</general><general>Blackwell Publishing</general><general>Blackwell Publishing Ltd</general><scope>BSCLL</scope><scope>AAYXX</scope><scope>CITATION</scope><scope>7ST</scope><scope>8BJ</scope><scope>C1K</scope><scope>FQK</scope><scope>JBE</scope><scope>SOI</scope></search><sort><creationdate>200208</creationdate><title>Developing Countries and the Gains from Regionalism: Links between Trade and Farm Policy Reforms in Mexico</title><author>Burfisher, Mary E. ; 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| ispartof | American journal of agricultural economics, 2002-08, Vol.84 (3), p.736-748 |
| issn | 0002-9092 1467-8276 |
| language | eng |
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| source | EBSCOhost Business Source Complete; Access via Wiley Online Library; JSTOR Archive Collection A-Z Listing |
| subjects | Agricultural economics Agricultural policy agricultural reforms Agriculture commercial policies computable general equilibrium (CGE) model Costs Developing countries Domestic trade Economics Efficiency Equilibrium F150 Farm exports Farms Free trade Imports International trade LDCs Mexico Multilateralism NAFTA North American Free Trade Agreement O130 O190 O240 protection Q170 Q180 Reform Reforms Regionalism Suppliers Tariffs Terms of trade Trade Trade development Trade liberalization Trade policy Trade restrictions |
| title | Developing Countries and the Gains from Regionalism: Links between Trade and Farm Policy Reforms in Mexico |
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