| Agricultural trade between the U.S. and Mexico has become progressively liberalized over the past 20 years, with significant increases in bilateral trade in many sectors. The rice sector in both nations, however, continues to be highly protected, with producers and millers on both sides of the border continuing to protest the other nation's protectionist policies. This paper examines market efficiency and spatial price integration in ten U.S. and Mexican rice markets over the 1998-2002 period, during which a retaliatory antidumping duty was imposed by Mexico. The paper uses a multiple step analytical process, including analysis of market price differentials, stationarity tests, bivariate and multivariate cointegration tests, and impulse response analysis.... |
