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ANALYSIS OF FORCES AFFECTING COMPETITIVE POSITION OF MEXICO IN SUPPLYING U.S. WINTER MELON MARKET

Jose de Jesus Espinoza Arellano, Stephen W. Fuller and Jaime E. Malaga

International Food and Agribusiness Management Review, 1998, vol. 01, issue 4, 13

Abstract: An econometric model representing the United States, Mexico and Caribbean nations melon sectors was estimated to analyze the primary economic forces influencing Mexico's competitiveness in the U.S. winter melon market, a period when about two-thirds of U.S. consumption is imported. Results show peso-devaluation to be important in the short-run and yield-enhancing technology to be important in the short- and long-run. Increased rates of growth in Mexican yields were about six times more effective at increasing market share than NAFTA provisions which phase-out U.S. tariffs. An accelerated rate of growth in Mexican per capita income was found to reduce melon exports about 75% while higher wages would reduce exports about 20% in the long-run.

Keywords: International; Relations/Trade (search for similar items in EconPapers)
Date: 1998
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Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:ags:ifaamr:34543

DOI: 10.22004/ag.econ.34543

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