The Effect of NAFTA on Mexican Agricultural Exports to the United States: The Case of Coffee Beans, 1970-2003

Mario M. Carrillo-Huerta and Israel Minor Bonilla
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Mario M. Carrillo-Huerta: Universidad de las Americas-Puebla
Israel Minor Bonilla: Universidad de las Americas-Puebla

Journal of Entrepreneurial Finance, 2005, vol. 10, issue 2, 76-93

Abstract: Since its implementation in 1994, NAFTA's impacts on trade have been extensively and positively evaluated at an aggregate level, but not so much at a regional or sectorial level. Through time series analysis, this paper studies NAFTA's impact on Mexican exports of coffee beans to the U.S. The study shows a NAFTA's positive, although short-lasting effect (for two-three years) on the studied variable, mainly because the international market of coffee beans used to function on a quota system, thus preventing Mexico from capitalizing (and furthering) on the comparative advantage derived from its location, close to the U.S. market.

Keywords: NAFTA; Mexico; Exports; Agriculture (search for similar items in EconPapers)
JEL-codes: O54 Q17 (search for similar items in EconPapers)
Date: 2005
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