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

Renan Zhuang, Won W. Koo and Jeremy W. Mattson

No 9839, 2007 Annual Meeting, July 29-August 1, 2007, Portland, Oregon from American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association)

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. An increase in per capita income and trade liberalization in foreign countries would improve U.S. trade balance. U.S. foreign direct investment abroad in food manufactures, a strong U.S. dollar and NAFTA are found to have negative effects on U.S. trade balance.

Keywords: Agribusiness; International Relations/Trade (search for similar items in EconPapers)
Pages: 28
Date: 2007
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Persistent link: https://EconPapers.repec.org/RePEc:ags:aaea07:9839

DOI: 10.22004/ag.econ.9839

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