Administrative Trade Barriers: Linking Theory to Empirical Models
Опубликовано на портале: 05-02-20042002
Department of Agricultural Economics
|Тематические разделы:||Экономика, Экономика отраслевых рынков, Экономика отраслевых рынков: Аграрная экономика|
Trade relations between United States and Mexico are becoming increasingly important and interrelated ever since January 1, 1994 when Mexico, Canada and the US entered into the North American Free Trade Agreement (NAFTA). Mexico is a net importer of agricultural products and imports most of its corn and sorghum from the U.S. In 2001, corn exports increased to 12% and sorghum exports increased to 82% with respect to total U.S. world exports of corn and sorghum. In the case за corn, trade barriers exist that add the measure of uncertainty to the transaction between exporter and importer. Trade uncertainty reduces trade volume and prices in the origin market and increases the prices in the destination market. The general economic of this study is to increase the understanding of institutional aspects of trade. The empirical results indicate that political market factors do play a statistically significant and economically important role in corn and sorghum import demand. Moreover, the study uncovered an implicit administrative trade barrier in the sorghum market that may be transferred through the corn market. Hence, direct impacts from import permits are not the only administrative trade barrier found in the import process. Welfare effects also show that increases in trade uncertainty reduce total welfare.