Structural reforms and price liberalization in Mexican agriculture

John Baffes ()

Journal of International Development, 1998, vol. 10, issue 5, 575-587

Abstract: This paper shows that the policy changes introduced by the Mexican Government in the mid-1980s induced a reduction in the profits of the crop subsector. A simple simulation exercise revealed that, under price liberalization of the four crops studied, the demand for agricultural labour will decline by 6 per cent (equivalent to about 360,000 agricultural workers); the supply of maize is expected to decline by about 11 per cent while the corresponding declines of wheat, sorghum, and beans will be 22, 13, and 5 percent, respectively. The use of fertilizer is also expected to decline to two thirds of its current use. © 1998 John Wiley & Sons, Ltd.

Date: 1998
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Persistent link: https://EconPapers.repec.org/RePEc:wly:jintdv:v:10:y:1998:i:5:p:575-587

DOI: 10.1002/(SICI)1099-1328(199807/08)10:5<575::AID-JID430>3.0.CO;2-L

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