THE IMPLICATIONS OF A NORTH AMERICAN FREE TRADE AREA FOR AGRICULTURE

This is one of two papers commissioned by the International Agricultural Trade Research Consortium on various aspects related to the agricultural sector of a prospective North American Free Trade Agreement. The companion paper to this one has been prepared by a working group chaired by Thomas Grennes, North Carolina State University. To minimize duplication with the Grennes paper, this paper has given greater attention to the general trade policy issues raised by a NAFTA, institutional factors, additional commodity detail in cereals, fruit and vegetables, and the relevance of other regional trade agreements such as the Canada-U.S. Trade Agreement. This work has also benefitted from an earlier report and its annexes, prepared for the Fraser Institute, under the direction of Tim Josling.International Relations/Trade,

On the causes of economic growth in Europe: why did agricultural labour productivity not converge between 1950 and 2005?

The objective of this study is to make a further contribution to the debate on the causes of economic growth in the European Continent. It explains why agricultural labour productivity differences did not converge between 1950 and 2005 in Europe. We propose an econometric model, one combining both proximate and fundamental causes of economic growth. The results show that the continuous exit of labour power from the sector, coupled with the increased use of productive factors originating in other sectors of the economy, caused the efficiency of agricultural workers to rise. However, we offer a complete explanation of the role played by institutions and geographical factors. Thus, we detect a direct and inverse relation between membership of the EU and the Communist bloc and the productivity of agricultural labour. In addition, strong support for agriculture affected productivity negatively