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Analysis of forces affecting competitive position of Mexico in supplying U.S. winter melon market
Institution:1. Institute of Biochemistry and Biotechnology, University of Veterinary and Animal Sciences-UVAS, Lahore, Pakistan;2. School of Life Science and Food Engineering, Huaiyin Institute of Technology, Huaian, China;3. Tecnologico de Monterrey, School of Engineering and Sciences, Monterrey, Mexico
Abstract:An econometric model representing the United States, Mexico and Caribbean nations melon sectors was estimated to analyze the primary economic forces influencing Mexico’s competitiveness in the U.S. winter melon market, a period when about two-thirds of U.S. consumption is imported. Results show peso-devaluation to be important in the short-run and yield-enhancing technology to be important in the short- and long-run. Increased rates of growth in Mexican yields were about six times more effective at increasing market share than NAFTA provisions which phase-out U.S. tariffs. An accelerated rate of growth in Mexican per capita income was found to reduce melon exports about 75% while higher wages would reduce exports about 20% in the long-run.
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