Export growth of NAFTA members, intra-industry trade and adjustment
AbstractThis paper looks at the issue of labour market adjustment in the context of expanded international trade of NAFTA economies both within the region and more generally. The study focuses on the period 1990-1998, a time frame that covers several years prior to and after the formation of NAFTA. Trade flows of the member countries are analysed using measures of static intra-industry trade (IIT) and dynamic (marginal) intra-industry trade (MIIT). Inferences are drawn from these results on the basis of the "smooth adjustment hypothesis" according to which IIT entails relatively low factor-market adjustment costs. The paper concludes that for trade flows within NAFTA, less labour market adjustment pressures are being experienced by the US and Mexico in terms of their relationship. A similar observation can be made for US-Canada trade. Trade between Canada and Mexico is seen as causing relatively more adjustment pressure compared to other intra-regional flows. In terms of the trade of NAFTA members with major trading partners outside of the group, the results are mixed.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by Inderscience Enterprises Ltd in its journal Global Business and Economics Review.
Volume (Year): 3 (2001)
Issue (Month): 1 ()
Contact details of provider:
Web page: http://www.inderscience.com/browse/index.php?journalID=168
North American Free Trade Agreement; labour market adjustment; international trade; NAFTA; trade flows; export growth; intra-industry trade; United States; Mexico; Canada.;
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Norbert Fiess, 2007.
"Business Cycle Synchronization and Regional Integration: A Case Study for Central America,"
World Bank Economic Review,
World Bank Group, vol. 21(1), pages 49-72.
- Fiess, Norbert, 2005. "Business cycle synchronization and regional integration: a case study for Central America," Policy Research Working Paper Series 3584, The World Bank.
- Norbert Fiess, . "Business Cycle Synchronization and Regional Integration: A Case Study for Central America," Working Papers 2005_14, Business School - Economics, University of Glasgow.
- Vogiatzoglou, Klimis, 2005. "Varieties or Qualities? Horizontal and Vertical Intra-industry Trade within the NAFTA Trade Bloc," Estey Centre Journal of International Law and Trade Policy, Estey Centre for Law and Economics in International Trade, vol. 6(2).
- Carlos Felipe Jaramillo & Daniel Lederman & Maurizio Bussolo & David Gould & Andrew Mason, 2006. "Challenges of CAFTA : Maximizing the Benefits for Central America," World Bank Publications, The World Bank, number 7127, March.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Graham Langley).
If references are entirely missing, you can add them using this form.