Article ID: | iaor201524587 |
Volume: | 31 |
Issue: | 3 |
Start Page Number: | 424 |
End Page Number: | 445 |
Publication Date: | Sep 2009 |
Journal: | Review of Agricultural Economics |
Authors: | Henneberry Shida Rastegari, Mutondo Joao E |
Keywords: | case studies, world trade, NAFTA, livestock |
The U.S. NAFTA partners are important markets for U.S. meat exports. A source‐differentiated almost ideal demand system is used in this study to estimate meat demand in Canada and Mexico. Empirical results suggest that while a U.S. price increase in the Canadian market is expected to increase U.S. sales revenues; it would decrease sales revenues in the Mexican market. Furthermore, an increase in meat expenditures in Canada and Mexico is expected to increase the demand for U.S. meats, while the bovine spongiform encephalopathy outbreaks have had a negative effect on U.S. and Canadian beef market shares. Finally, a decomposition of the causes of changes in demand for U.S. meats over time is performed.