The Effects of NAFTA and U.S. Farm Policies on Illegal Immigration and Agricultural Trade

We analyze the effects of the North American Free Trade Agreement (NAFTA) and United States farm subsidies on U.S.-Mexican illegal immigration and agricultural trade. The theoretical analysis develops an integrated trade-migration model and shows that NAFTA and U.S. subsidies exacerbate the illegal labor flow and increase U.S. exports. The theoretical analysis is empirically implemented by simultaneous estimation and simulation analysis. The analysis shows that NAFTA increased the number of undocumented workers to U.S. agriculture and U.S. farm exports to Mexico by an average of 1573 and $6.82 billion, respectively. U.S. farm subsidy reduction decreases unauthorized entry marginally and U.S. farm exports by an average of $3.2 billion.


Issue Date:
2012-02
Publication Type:
Journal Article
PURL Identifier:
http://purl.umn.edu/120457
Published in:
Journal of Agricultural and Applied Economics, Volume 44, Number 1
Page range:
1-19
Total Pages:
19
JEL Codes:
F13; F16; F22




 Record created 2017-04-01, last modified 2017-08-26

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