The agricultural policy of Mexico in the american context (1995-2020)

Abstract

Objective: To analyze the long-term relationship of two groups of agricultural policy instruments classifiedby the OECD-Producer Support Estimator (PSE) and General Services Support Estimator (GSSE)-OECDclassification on Agricultural Gross Domestic Product (AGDP) in Mexico, USA, Canada, Chile and Brazilduring the period 1995-2020, to generate information that contributes to the design of agricultural policies.Design/Methodology/Approach: The information used in this work was developed by the OECD and wasintegrated into a time series for the 1995-2020 period. A quantitative analysis was carried out based on theeconometric method, applying the cointegration test.Results: The Canadian, Brazilian, and Mexican series are cointegrated, because the error of the model has aunit root (i.e., individual variables are not of order I(0)); however, the combination of their variables show thatthe error is a process I(0), with a zero mean. However, the Chilean and USA variables were not cointegrated.Study Limitations/Implications: An open market environment requires the development and implementationof policies that include the use of diverse and relevant instrument groups, guaranteeing that the resourcestransferred to the sector generate the expected results.Findings/Conclusions: In comparison with the PSE, the GSSE has a closer long-term relation with thegrowth of the agricultural GPB in most countries; therefore, using this group of instruments to transferresources to the sector is assumed to improve its performance to a greater degree.