IDEAS home Printed from https://ideas.repec.org/a/caa/jnlage/v64y2018i1id193-2016-agricecon.html
   My bibliography  Save this article

The impact of banking and external sectors on Mexican agriculture in the period 1995-2015

Author

Listed:
  • Guillermo BENAVIDES-PERALES

    (Tecnológico de Monterrey, EGADE Business School, Mexico City, Mexico)

  • Isela Elizabeth TELLEZ-LEON

    (Instituto Politécnico Nacional, Escuela Superior de Economía, Mexico City, Mexico)

  • Francisco VENEGAS-MARTINEZ

    (Instituto Politécnico Nacional, Escuela Superior de Economía, Mexico City, Mexico)

Abstract

Mexican agricultural production has been characterised by a lack of dynamism in recent years and is losing ground in terms of GDP. This may reflect the lack of funding from commercial and development banks. This research aims at studying the dynamics of the agriculture sector through econometric analysis using Vector Autoregressive (VAR) and Vector Error Correction (VEC) models in order to examine the short- and long-run relationships among agricultural production, terms of trade (ratio of agricultural prices and general price level), agricultural exports and lending from commercial and development banks. The main empirical findings, contrary to what was expected, is that even though there was a precarious level of funding from the banking sector, credit from commercial banking was higher than that from development banking in the last decades. Further, relative prices were found to have a negative relationship with agricultural exports, showing the importance of the external sector in agriculture.

Suggested Citation

  • Guillermo BENAVIDES-PERALES & Isela Elizabeth TELLEZ-LEON & Francisco VENEGAS-MARTINEZ, 2018. "The impact of banking and external sectors on Mexican agriculture in the period 1995-2015," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 64(1), pages 36-49.
  • Handle: RePEc:caa:jnlage:v:64:y:2018:i:1:id:193-2016-agricecon
    DOI: 10.17221/193/2016-AGRICECON
    as

    Download full text from publisher

    File URL: http://agricecon.agriculturejournals.cz/doi/10.17221/193/2016-AGRICECON.html
    Download Restriction: free of charge

    File URL: http://agricecon.agriculturejournals.cz/doi/10.17221/193/2016-AGRICECON.pdf
    Download Restriction: free of charge

    File URL: https://libkey.io/10.17221/193/2016-AGRICECON?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Jorge Fernandez-Cornejo & C. Richard Shumway, 1997. "Research and Productivity in Mexican Agriculture," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 79(3), pages 738-753.
    2. Alexandre Vera-Cruz & Gabriela Dutrenit & Griselda Martinez & Arturo Torres-Vargas & Javier Ekboir, 2008. "Virtues and limits of competitive funds to finance research and innovation: The case of Mexican agriculture," Science and Public Policy, Oxford University Press, vol. 35(7), pages 501-513, August.
    3. Donald K. Freebairn, 1969. "The Dichotomy of Prosperity and Poverty in Mexican Agriculture," Land Economics, University of Wisconsin Press, vol. 45(1), pages 31-42.
    4. Antonio Yunez-Naude & Fernando Barceinas Paredes, 2004. "The Agriculture of Mexico After Ten Years of Nafta Implementation," Working Papers Central Bank of Chile 277, Central Bank of Chile.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Esposti, Roberto & Pierani, Pierpaolo, 2000. "Modelling technical change in Italian agriculture: a latent variable approach," Agricultural Economics, Blackwell, vol. 22(3), pages 261-270, April.
    2. Carlos Ludena, 2010. "Agricultural Productivity Growth, Efficiency Change and Technical Progress in Latin America and the Caribbean," Research Department Publications 4675, Inter-American Development Bank, Research Department.
    3. Guisan, M.Carmen & Exposito, Pilar, 2002. "Econometric Models of Agriculture in OECD Countries: Production, Income, and Agrarian Employment in Spain, France, Japan, and the Usa, 1965-99," Economic Development 60, University of Santiago de Compostela. Faculty of Economics and Business. Econometrics..
    4. Jones, Keithly G. & Arnade, Carlos Anthony, 2003. "A Joint Livestock-Crop Multi-Factor Relative Productivity Approach," 2003 Annual Meeting, February 1-5, 2003, Mobile, Alabama 35157, Southern Agricultural Economics Association.
    5. Laurens Klerkx & Andy Hall & Cees Leeuwis, 2009. "Strengthening agricultural innovation capacity: are innovation brokers the answer?," International Journal of Agricultural Resources, Governance and Ecology, Inderscience Enterprises Ltd, vol. 8(5/6), pages 409-438.
    6. repec:oup:apecpp:v:40:y:2018:i:3:p:421-444. is not listed on IDEAS
    7. Unai Pascual & Roberto Martínez-Espiñeira, 2009. "The effect of environmental change and price policies on livelihoods in tropical agroforestry systems," Journal of International Development, John Wiley & Sons, Ltd., vol. 21(3), pages 433-446.
    8. Malik Shahzad Shabbir & Nusrat Yaqoob, 2019. "The impact of technological advancement on total factor productivity of cotton: a comparative analysis between Pakistan and India," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 8(1), pages 1-16, December.
    9. Pingali, Prabhu L. & Heisey, Paul W., 1999. "Cereal Crop Productivity in Developing Countries: Past Trends and Future Prospects," Economics Working Papers 7682, CIMMYT: International Maize and Wheat Improvement Center.
    10. Antonio YUNEZ NAUDE & J. Edward TAYLOR, 2006. "The Effects Of Nafta And Domestic Reforms In The Agriculture Of Mexico: Predictions And Facts," Region et Developpement, Region et Developpement, LEAD, Universite du Sud - Toulon Var, vol. 23, pages 161-186.
    11. Ballet, Jérôme & Bazin, Damien Jérôme Albert & Komena, Boniface K., 2020. "Unequal capabilities and natural resource management: The case of Côte d’Ivoire," World Development, Elsevier, vol. 134(C).
    12. Miguel Martín-Retortillo & Vicente Pinilla & Jackeline Velazco & Henry Willebald, 2016. "The dynamics of latin american agricultural production growth, 1950-2008," Documentos de Trabajo (DT-AEHE) 1610, Asociación Española de Historia Económica.
    13. Fuglie, Keith, 2015. "Accounting for growth in global agriculture," Bio-based and Applied Economics Journal, Italian Association of Agricultural and Applied Economics (AIEAA), vol. 4(3), pages 1-34, December.
    14. Silvia Prina, 2013. "Special Issue. Guest Editor: Zhihao Yu," Review of Development Economics, Wiley Blackwell, vol. 17(3), pages 594-608, August.
    15. Lin, Ni & Davis, George C. & Shumway, C. Richard, 1998. "Aggregation Without Separability: Tests Of U.S. And Mexican Agricultural Production Data," 1998 Annual meeting, August 2-5, Salt Lake City, UT 20927, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    16. John Rapley, 2001. "Convergence: myths and realities," Progress in Development Studies, , vol. 1(4), pages 295-308, October.
    17. Maziya, Sikhanyiso Angel, 2019. "The impact of the Europeun Union grant on access to credit and production in smallholder sugarcane agriculture in Siphofaneni, Eswatini," Research Theses 334775, Collaborative Masters Program in Agricultural and Applied Economics.
    18. Sartas, Murat & Schut, Marc & Proietti, Claudio & Thiele, Graham & Leeuwis, Cees, 2020. "Scaling Readiness: Science and practice of an approach to enhance impact of research for development," Agricultural Systems, Elsevier, vol. 183(C).
    19. Bouali Guesmi & Juan Hernán Cabas Monje & Marta Alfaro Valenzuela & José M. Gil, 2024. "Impact of public research investments on agricultural productivity in Chile," Agribusiness, John Wiley & Sons, Ltd., vol. 40(1), pages 277-298, January.
    20. Fernandez-Cornejo, Jorge, 2004. "The Seed Industry In U.S. Agriculture: An Exploration Of Data And Information On Crop Seed Markets, Regulation, Industry Structure, And Research And Development," Agricultural Information Bulletins 33671, United States Department of Agriculture, Economic Research Service.
    21. Cox, Michael & Mincey, Sarah & Ruseva, Tatyana & Villamayor-Tomas, Sergio & Fischer, Burney, 2013. "Evaluating the USFS State and Private Forestry Redesign: A first look at policy implications," Ecological Economics, Elsevier, vol. 85(C), pages 35-42.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:caa:jnlage:v:64:y:2018:i:1:id:193-2016-agricecon. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Ivo Andrle (email available below). General contact details of provider: https://www.cazv.cz/en/home/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.