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Title: Growing U.S. Trade Deficit in Consumer-Oriented Agricultural Products
Authors: Zhuang, Renan
Koo, Won W.
Mattson, Jeremy W.
Keywords: consumer-oriented products
exchange rate
trade balance
trade deficit
JEL Codes: F14
Issue Date: 2008-12
Abstract: We investigate the factors behind the growing U.S. trade deficit in consumer-oriented agricultural products by using reliable panel data and an empirical trade model derived from international trade theory. The results indicate that per capita income in the United States appears to be the most important determinant for the growing U.S. trade deficit of consumer-oriented agricultural products. An increase in per capita income and trade liberalization in foreign countries would improve the U.S. trade balance. U.S. foreign direct investment abroad in food manufactures and the North American Free Trade Agreement (NAFTA) are found to have negative effects on the U.S. trade balance.
Institution/Association: Journal of Agricultural and Applied Economics>Volume 40, Number 03, December 2008
Total Pages: 13
From Page: 951
To Page: 965
Collections:Volume 40, Number 03, December 2008

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