EFFECT OF LIBERALIZED U.S.-MEXICO DRY ONION TRADE: A SPATIAL AND INTERTEMPORAL EQUILIBRIUM ANALYSIS

A spatial, intertemporal equilibrium model of the North American dry onion economy is constructed to analyze the impact of liberalized U.S.-Mexico trade. In a free-trade environment, exports of Mexican onions to the U.S. are projected to increase about 50%, while Mexico's share of the U.S. market increases from 8.7 to 12.8%. Farm-level prices in the U.S. are projected to decline 8.9%, while production declines 2.4%. The effect of free trade on U.S. producers is disproportional across regions. Northwest storage onion producers experience the greatest decline in production; however, analysis suggests that improved storage methods may offset a portion of the unfavorable impacts of onion producers; the industry would not be economically devastated.


Issue Date:
1996-07
Publication Type:
Journal Article
PURL Identifier:
http://purl.umn.edu/15222
Published in:
Journal of Agricultural and Applied Economics, Volume 28, Number 1
Page range:
135-147
Total Pages:
13




 Record created 2017-04-01, last modified 2017-08-23

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