Nafta´s trade efects: new evidence with a gravity model
AbstractThis paper estimates econometrically the impact of NAFTA on US-Mexico and US-third countries (groups of countries) trade flows. Using a traditional gravity-equation framework, we try to see to what extent the bilateral trade flows between the US and different countries differ from a gravity-type specification. By incorporating a series of dummy variables into the specification, we interpret the changes in these dummy variables over time as evidence on whether NAFTA affected the trade patterns. The main conclusion is that NAFTA did not have a significant effect on US trade patterns, neither with Mexico nor with other countries in the world (with exception of CACM).
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Bibliographic InfoArticle provided by University of Chile, Department of Economics in its journal Estudios de Economia.
Volume (Year): 33 (2006)
Issue (Month): 1 Year 2006 (June)
NAFTA; Gravity Model; Trade Diversion; Fixed Effects.;
Find related papers by JEL classification:
- F10 - International Economics - - Trade - - - General
- F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
- F15 - International Economics - - Trade - - - Economic Integration
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