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Competitiveness of the Mexican Strawberry for Export to USA: A Partial Equilibrium Model
Author(s) -
Daniel Hernández-Soto,
María Teresa de la Garza Carranza,
Eugenio Guzmán Soria
Publication year - 2014
Publication title -
journal of globalization competitiveness and governability
Language(s) - English
Resource type - Journals
ISSN - 1988-7116
DOI - 10.3232/gcg.2011.v5.n3.06
Subject(s) - agricultural economics , partial equilibrium , economics , order (exchange) , agricultural science , geography , environmental science , general equilibrium theory , microeconomics , finance
USA is the main strawberry consumer in the world, so in order to satisfy the demand also imports large quantities from Mexico. The Mexican strawberry represented, in 2009, the 99,30 % of the total imported by this country; while between 1989 and 2009, the annual average growth rate of the Mexican exports of strawberry to USA was 9.81 %. According with the calculated price flexibility by the econometric model results, due to increments of 30 % in the exported quantity to USA for one year, the price would be reduced in 2,4715 % in the short time. The simulation model shows that the Benefit-Cost Relationship for producers of the States of Michoacan, Baja California and Guanajuato would be greater than 1 (1,42; 1,36 and 1,12 respectively); that is to say, that continues being profitable for the strawberry producers of the three States, an increment of 30 % in the exported quantity to USA.

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