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Did NAFTA Cause a "Giant Sucking Sound"?

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  • WILLEM THORBECKE
  • CHRISTIAN EIGEN-ZUCCHI

Abstract

The North American Free Trade Agreement (NAFTA) passed Congress amidst contentious debate in 1993. Detractors argued that it would produce an exodus of jobs while proponents argued that it would create jobs. We examine the economic effects of NAFTA. The evidence indicates that while the employment effects have been small, NAFTA has caused an explosion of trade. This increase in exports and imports has multiplied gains from trade. In addition NAFTA helped Mexico recover quickly from the 1994-1995 peso crisis and provided a political anchor for Mexico's attempts to privatize, deregulate, and liberalize. The resulting growth and stability in Mexico have benefitted the U.S., which shares a 2,000 mile border with Mexico.

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Bibliographic Info

Article provided by Transaction Publishers in its journal Journal of Labor Research.

Volume (Year): 23 (2002)
Issue (Month): 4 (October)
Pages: 647-658

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Handle: RePEc:tra:jlabre:v:23:y:2002:i:4:p:647-658

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Web page: http://transactionpub.metapress.com/link.asp?target=journal&id=110581

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Cited by:
  1. Mark Gius, 2006. "Using Panel Data to Estimate the Effect of the North American Free Trade Agreement on Employment and Wages at the State Level," New York Economic Review, New York State Economics Association (NYSEA), vol. 37(1), pages 20-31.
  2. M. Sirgy & Dong-Jin Lee & Chad Miller & James Littlefield, 2004. "The Impact of Globalization on a Country's Quality of Life: Toward an Integrated Model," Social Indicators Research, Springer, vol. 68(3), pages 251-298, September.
  3. M. Sirgy & Dong-Jin Lee & Chad Miller & James Littlefield & Eda Atay, 2007. "The Impact of Imports and Exports on a Country’s Quality of Life," Social Indicators Research, Springer, vol. 83(2), pages 245-281, September.
  4. Sapkota, Jeet Bahadur, 2011. "Impacts of globalization on quality of life: evidence from developing countries," MPRA Paper 37506, University Library of Munich, Germany.

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