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Trade (Dis)integration: The Sudden Death of NAFTA

Author

Listed:
  • Dimitrios Bakas

    (Nottingham Trent University
    Rimini Centre for Economic Analysis (RCEA))

  • Karen Jackson

    (University of Westminster)

  • Georgios Magkonis

    (University of Portsmouth)

Abstract

This paper uses a structural PVAR model to study the macroeconomic effects of trade disintegration among NAFTA members. The results reveal substantial asymmetric responses, showing that the US is the most affected economy from a sudden negative trade integration shock. Moreover, Canada and the US are found to be relatively more interconnected with each other compared to the Mexican economy. Our findings question the US decision to push for the renegotiation of the NAFTA agreement.

Suggested Citation

  • Dimitrios Bakas & Karen Jackson & Georgios Magkonis, 2020. "Trade (Dis)integration: The Sudden Death of NAFTA," Open Economies Review, Springer, vol. 31(4), pages 931-943, September.
    • Handle: RePEc:kap:openec:v:31:y:2020:i:4:d:10.1007_s11079-019-09567-1
    DOI: 10.1007/s11079-019-09567-1
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    References listed on IDEAS

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    Cited by:

    1. Vatsa, Puneet, 2021. "Have Business Cycles Become More Synchronous After NAFTA?," American Business Review, Pompea College of Business, University of New Haven, vol. 24(1), pages 54-66, May.

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    More about this item

    Keywords

    NAFTA; Trade integration; Panel VAR;
    All these keywords.

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F15 - International Economics - - Trade - - - Economic Integration
    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models

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