Intra-NAFTA Trade in Mid-South Industries: A Gravity Model
AbstractUsing a rich dataset on traffic between members of the North American Free Trade Agreement (NAFTA), this paper examines industry-level trade growth since the implementation of NAFTA for five Mid-South states. Gravity model results show significant disparities across states and industries. For exports within the NAFTA region, the results show large differences in growth rates both between states and between industries. For imports within the NAFTA region, the growth rates vary more between industries than between states. Our results also confirm the importance of intra-industry trade in the U.S.-Mexico trade relationship and suggest a considerable relocation of production linked to trade between NAFTA members.
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Bibliographic InfoArticle provided by Southern Regional Science Association in its journal Review of Regional Studies.
Volume (Year): 36 (2006)
Issue (Month): 2 ()
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Exports; Free Trade; Import; Regions; Trade;
Find related papers by JEL classification:
- F14 - International Economics - - Trade - - - Empirical Studies of Trade
- L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General
- R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
- R32 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Production Analysis, and Firm Location - - - Other Production and Pricing Analysis
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