Growing U.S. Trade Deficit in Consumer-Oriented Agricultural Products

Renan Zhuang, Won W. Koo and Jeremy Mattson

Journal of Agricultural and Applied Economics, 2008, vol. 40, issue 03

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.

Keywords: consumer-oriented products; exchange rate; trade balance; trade deficit; Agribusiness; Food Consumption/Nutrition/Food Safety; International Relations/Trade; F14; Q17 (search for similar items in EconPapers)
Date: 2008
View list of references

Downloads: (external link)
http://purl.umn.edu/47270 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: http://EconPapers.repec.org/RePEc:ags:joaaec:47270

Access Statistics for this article

More articles in Journal of Agricultural and Applied Economics from Southern Agricultural Economics Association
Contact information at EDIRC.
Series data maintained by AgEcon Search ().