NORTH AMERICAN INTEGRATION IN AGRICULTURE: A SURVEY PAPER

This paper surveys the economic literature about North American integration in the agri-food sector. The purpose of this survey is two-fold: it summarizes the lessons learned, and it identifies areas where further research could provide valuable input into policy discussions. As the integration of North American agriculture progresses, the range of agri-food policies with strictly domestic effects becomes increasingly narrow. Thus, policymakers in North America need to consider the effects that their decisions will have on other NAFTA countries, as well as the impact that decisions by other NAFTA governments will have at home. The paper is organized as follows. Section 2 identifies the major factors contributing to integration and comments on their relative importance. Section 3 summarizes research into the indicators of integration. These studies focus on price co-movements and trade flow data. Section 4 outlines the state of current knowledge regarding foreign direct investment in the agri-food sector, while Section 5 assesses the impact of integration on the structure and performance of the sector. Section 6 discusses opportunities for further integration in the sector, and Section 7 concludes the paper. Throughout the paper, gaps in the knowledge base are highlighted, along with suggested areas for further research