Implications of U.S. Trade Agreements and U.S. Nutrition Policies for Produce Production, Demand, and Trade

This study used aggregated data for fresh vegetables and fresh fruits to analyze how trade flows in the fresh produce industry have changed under trade agreements and to assess the potential implications to nutrition policies in the United States. The first part of the analysis uses a Bai-Perron tes...

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Bibliographic Details
Published in:Journal of agricultural and applied economics 2013-08, Vol.45 (3), p.465-480
Main Authors: Palma, Marco A., Ribera, Luis A., Bessler, David
Format: Article
Language:English
Subjects:
Agricultural commodities
Decomposition
Diet
Dietary guidelines
Economic models
Food
Free trade
Fruits
International trade
North American Free Trade Agreement
Nutrition
Prices
Session Title: Future Domestic and International Competitiveness of the Southern Fruit and Vegetable Industry
Studies
Trade agreements
Vegetables
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Summary:This study used aggregated data for fresh vegetables and fresh fruits to analyze how trade flows in the fresh produce industry have changed under trade agreements and to assess the potential implications to nutrition policies in the United States. The first part of the analysis uses a Bai-Perron test to endogenously determine any structural break points in vegetable and fruit trade movements and prices. Directed acyclic graphs and historical decompositions are used to establish causal patterns on innovations from vector autoregression models fitted to annual observations of trade flows, prices, and income. The results showed that trade agreements have had significant impacts to the produce industry. Income was a major determinant of domestic fruit production and imports.
ISSN:1074-0708
2056-7405
DOI:10.1017/S1074070800004983