ABSTRACT
Interpretation of the phenomena that explain the evolution of foreign trade in agricultural and livestock products varies according to the theoretical framework being used. Calculations of the factors that impel agricultural and livestock production by source of demand provide additional information on the process. The process of stagnation and transformation of Mexico's agricultural and livestock industry is closely related to the economic development model followed by Mexico and, in particular, to the urban-industrial emphasis of state activity. There is a recent and popular hypothesis about the impact of exchange policy on foreign trade in agricultural and livestock products. A detailed study of the Mexican agricultural and livestock sector's performance must take into account its heterogeneity. The capacity of the agricultural and livestock sector to provide and generate employment is fundamental to development strategies of countries such as Mexico; analysis of the effects of alternative paths of growth and governmental actions contributes to the formulation of policy measures.
