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

Authors

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

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.

JEL Codes

O54, Q17

Keywords

NAFTA, Mexico, Exports, Agriculture

Recommended Citation

Carrillo-Huerta, Mario M. and Bonilla, Israel Minor (2005) "The Effect of NAFTA on Mexican Agricultural Exports to the United States: The Case of Coffee Beans, 1970-2003," Journal of Entrepreneurial Finance and Business Ventures: Vol. 10: Iss. 2, pp. 76-93.
DOI: https://doi.org/10.57229/2373-1761.1059
Available at: https://digitalcommons.pepperdine.edu/jef/vol10/iss2/5