NAFTA and Manufacturing Productivity in Mexico
AbstractUsing a panel of Mexican manufacturing plants over the period 1993-1999, I estimate total factor productivity (TFP) at the plant level and study its evolution in the face of trade and investment liberalization under the North American Free Trade Agreement. I implement the Olley-Pakes (1996) algorithm on the data to correct for simultaneity and sample selection problems a¤ecting OLS estimates. I then relate the evolution of TFP over the period to tariff levels in Mexico and the United States, import penetration, exporting activities, imported inputs use and foreign capital participation. I ...nd that increased import competition and access to the U.S. market have had a positive impact on TFP. Foreign capital also has had a positive impact on TFP, but intra-industry spillovers are negative. Last, there is no clear evidence regarding the impact from the use of imported inputs or from exporting operations.
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Bibliographic InfoArticle provided by LACEA - LATIN AMERICAN AND CARIBBEAN ECONOMIC ASSOCIATION in its journal JOURNAL OF LACEA ECONOMIA.
Volume (Year): (2003)
Issue (Month): ()
Contact details of provider:
"NAFTA; trade liberalization; manufacturing; productivity; foreign directinvestment";
Find related papers by JEL classification:
- D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
- F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
- F14 - International Economics - - Trade - - - Empirical Studies of Trade
- F15 - International Economics - - Trade - - - Economic Integration
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