MODELING IMPORT DEMAND UNDER GOVERNMENT INTERVENTION AND FINANCIAL CONSTRAINTS: THE CASE OF CORN IN MEXICO

C. S. Kim

No 277848, Staff Reports from United States Department of Agriculture, Economic Research Service

Abstract: Two problems make estimation of import demand for developing countries extremely difficult. The first is a conceptual problem: how to model government intervention which simultaneously distorts consumer and producer prices and foreign exchange allocations. The second problem is a technical one: how to obtain econometrically consistent estimates of an import demand equation which includes all the major parameters, given only 10 years or less of time series data. Both of these problems are addressed in this paper which presents an attempt to estimate Mexican corn import demand. Results indicate that Mexican corn imports could be substantially reduced by transferring relatively small amounts of subsidies from consumers to producers. Furthermore, effects on Mexican corn import demands of world border prices, exchange rates, and foreign exchange allotments are insignificant.

Keywords: Crop Production/Industries; Demand and Price Analysis; International Relations/Trade (search for similar items in EconPapers)
Pages: 23
Date: 1986-08
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
https://ageconsearch.umn.edu/record/277848/files/ers-report-228.pdf (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: https://EconPapers.repec.org/RePEc:ags:uerssr:277848

DOI: 10.22004/ag.econ.277848

Access Statistics for this paper

More papers in Staff Reports from United States Department of Agriculture, Economic Research Service Contact information at EDIRC.
Bibliographic data for series maintained by AgEcon Search ().