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TRADABILITY AND MARKET EQUILIBRIUM FOR U.S.-MEXICO FRESH TOMATOES

Luz E. Padilla-Bernal, Dawn Thilmany () and Maria Loureiro

No 36142, 2001 Annual Meeting, July 8-11, 2001, Logan, Utah from Western Agricultural Economics Association

Abstract: Tomato trade between the U.S. and Mexico has grown significantly during the past decade. This increased trade, together with major structural changes in US produce marketing channels, has increased the complexity of conducting analysis of market integration and equilibrium. This study implements an Extended Parity Bounds Model (EPBM), following the work of Barrett and Li, to examine fresh tomato trade relationships between major shipping points and terminal markets for Mexican imported and Florida and California tomatoes. Findings suggest that, although markets seem relatively integrated and efficient, there exist some potential for claims of inefficient or overly competitive behavior. As is expected, the more complex the marketing channels between producer and wholesaler (distance or international boundaries), the more likely that markets operate suboptimally.

Keywords: International; Relations/Trade (search for similar items in EconPapers)
Pages: 35
Date: 2001
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Persistent link: https://EconPapers.repec.org/RePEc:ags:waealo:36142

DOI: 10.22004/ag.econ.36142

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