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The role of NAFTA and returns to scale in export duration

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  • Besedes, Tibor

Abstract

While exports within NAFTA face a lower hazard, its onset has increased the hazard of exporting between the members, though intra-NAFTA exports still enjoy a lower hazard. There are differences in the timing of the effect of NAFTA across the three members. Unlike the effect on Canadian exports, the effect on Mexican and U.S. exports is persistent. Exports of increasing-returns-to-scale manufacturing products faced the highest hazard across all three members. The effect of NAFTA on the hazard of exporting each of the three returns to scale type of products is exporter specific with no uniform patterns.

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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 31217.

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Date of creation: 31 May 2011
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Handle: RePEc:pra:mprapa:31217

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Keywords: hazard; export survival; returns to scale; NAFTA;

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References

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  1. John Romalis, 2007. "NAFTA's and CUSFTA's Impact on International Trade," The Review of Economics and Statistics, MIT Press, vol. 89(3), pages 416-435, August.
  2. Volker Nitsch, 2007. "Die Another Day: Duration in German Import Trade," CESifo Working Paper Series 2085, CESifo Group Munich.
  3. Mélise Jaud & Madina Kukenova & Martin Strieborny, 2009. "Financial dependence and intensive margin of trade," PSE Working Papers halshs-00575005, HAL.
  4. Leonardo Iacovone & Ferdinand Rauch & L. Alan Winters, 2010. "Trade as an Engine of Creative Destruction Mexico experience with Chinese competition," Working Paper Series 0510, Department of Economics, University of Sussex.
  5. Werner Antweiler & Daniel Trefler, 2000. "Increasing Returns and All That: A View From Trade," NBER Working Papers 7941, National Bureau of Economic Research, Inc.
  6. James E. Rauch & Joel Watson, 1999. "Starting Small in an Unfamiliar Environment," NBER Working Papers 7053, National Bureau of Economic Research, Inc.
  7. Melitz, Marc J, 2002. "The Impact of Trade on Intra-Industry Reallocations and Aggregate Industry Productivity," CEPR Discussion Papers 3381, C.E.P.R. Discussion Papers.
  8. Tibor Besedes & Thomas J. Prusa, 2007. "The Role of Extensive and Intensive Margins and Export Growth," NBER Working Papers 13628, National Bureau of Economic Research, Inc.
  9. Tibor Besedeš, 2008. "A Search Cost Perspective on Formation and Duration of Trade," Review of International Economics, Wiley Blackwell, vol. 16(5), pages 835-849, November.
  10. Timothy J. Kehoe & Kim J. Ruhl, 2006. "How Important is the New Goods Margin in International Trade?," 2006 Meeting Papers 733, Society for Economic Dynamics.
  11. Cadot, Olivier & Iacovone, Leonardo & Pierola, Denisse & Rauch, Ferdinand, 2011. "Success and failure of African exporters," Policy Research Working Paper Series 5657, The World Bank.
  12. Debaere, Peter & Mostashari, Shalah, 2010. "Do tariffs matter for the extensive margin of international trade? An empirical analysis," Journal of International Economics, Elsevier, vol. 81(2), pages 163-169, July.
  13. Wolfgang Hess & Maria Persson, 2012. "The duration of trade revisited," Empirical Economics, Springer, vol. 43(3), pages 1083-1107, December.
  14. repec:pse:psecon:2009-35 is not listed on IDEAS
  15. Besedes, Tibor, 2010. "Export Differentiation in Transition Economies," MPRA Paper 26362, University Library of Munich, Germany.
  16. Hess, Wolfgang & Persson, Maria, 2010. "Exploring the Duration of EU Imports," Working Papers 2010:4, Lund University, Department of Economics.
  17. Tibor Besedes, . "A Search Cost Perspective on Duration of Trade," Departmental Working Papers 2006-12, Department of Economics, Louisiana State University.
  18. Besedes, Tibor & Prusa, Thomas J., 2006. "Product differentiation and duration of US import trade," Journal of International Economics, Elsevier, vol. 70(2), pages 339-358, December.
  19. Brenton, Paul & Saborowski, Christian & von Uexkull, Erik, 2009. "What explains the low survival rate of developing country export flows ?," Policy Research Working Paper Series 4951, The World Bank.
  20. Hess, Wolfgang & Persson, Maria, 2010. "The Duration of Trade Revisited. Continuous-Time vs. Discrete-Time Hazards," Working Papers 2010:1, Lund University, Department of Economics.
  21. Tibor Besedes & Thomas J. Prusa, 2003. "On the Duration of Trade," NBER Working Papers 9936, National Bureau of Economic Research, Inc.
  22. repec:hal:wpaper:halshs-00575005 is not listed on IDEAS
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Cited by:
  1. De Hoyos, Rafael E. & Iacovone, Leonardo, 2011. "Economic performance under NAFTA : a firm-level analysis of the trade-productivity linkages," Policy Research Working Paper Series 5661, The World Bank.
  2. Rudi, Jeta & Grant, Jason H. & Peterson, Everett B., 2012. "Survival of the Fittest: Explaining Export Duration and Export Failure in the U.S. Fresh Fruit and Vegetable Market," 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington 124706, Agricultural and Applied Economics Association.

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