An analysis of the sources of instability of Mexico's export earnings from cotton

Published in 1975

Mexico has been the second largest exporter of cotton in the world; and it has also been the strongest competitor of the United States in most cotton importer countries. Given these facts this study is concerned with finding the sources of instability of the value of Mexican exports of cotton; it is primarily oriented toward the relations that exist between the U . S. cotton policies and the value of Mexican cotton exports. The approach considered in this research is that of quantitative analysis in order to achieve the following objectives: To identify the relationship between the U . S. cotton policies and the variability of the value of Mexican exports, production, and prices of cotton. To determine the net stabilizing or destabilizing effect of the U.S, cotton policies on the Mexican value of exports, production, and prices. The statistical concept of variance was used as the basis for the analysis of the data. The analysis shows that there are some elements of the U. S. cotton policies that cause instability in the export value, the export price, and the production of Mexican cotton. It also shows that during the last periods analyzed there have been stronger elements contributing to the instability of the value of exports. One of the most important elements contributing to that instability of the value of Mexican cotton exports is production of cotton in Mexico

AZU_TD_BOX312_E9791_1975_173.pdf (1.56 MB)

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