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The Effects of North American Free Trade Agreement and United States Farm Policies on Illegal Immigration and Agricultural Trade

Published online by Cambridge University Press:  26 January 2015

Jeff Luckstead ,
Stephen Devadoss  and
Abelardo Rodriguez
Jeff Luckstead
Affiliation:
Department of Agricultural Economics at the University of Idaho, Moscow, Idaho
Stephen Devadoss
Affiliation:
Department of Agricultural Economics at the University of Idaho, Moscow, Idaho
Abelardo Rodriguez
Affiliation:
Department of Agricultural Economics at the University of Idaho, Moscow, Idaho
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Abstract

We analyze the effects of the North American Free Trade Agreement (NAFTA) and United States farm subsidies on U.S.-Mexican illegal immigration and agricultural trade. The theoretical analysis develops an integrated trade-migration model and shows that NAFTA and U.S. subsidies exacerbate the illegal labor flow and increase U.S. exports. The theoretical analysis is empirically implemented by simultaneous estimation and simulation analysis. The analysis shows that NAFTA increased the number of undocumented workers to U.S. agriculture and U.S. farm exports to Mexico by an average of 1573 and $6.82 billion, respectively. U.S. farm subsidy reduction decreases unauthorized entry marginally and U.S. farm exports by an average of $3.2 billion.

Keywords

farm policiesillegal migrationNAFTAtradeF13F16F22
Type
Research Article
Information
Journal of Agricultural and Applied Economics , Volume 44 , Issue 1 , February 2012 , pp. 1 - 19
Copyright
Copyright © Southern Agricultural Economics Association 2002

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