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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. Volker Nitsch, 2007. "Die Another Day: Duration in German Import Trade," DEGIT Conference Papers c012_037, DEGIT, Dynamics, Economic Growth, and International Trade.
  2. Olivier Cadot & Leonardo Iacovone & Denisse Pierola & Ferdinand Rauch, 2011. "Success and Failure of African Exporters," CEP Discussion Papers dp1054, Centre for Economic Performance, LSE.
  3. Wolfgang Hess & Maria Persson, 2011. "Exploring the duration of EU imports," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 147(4), pages 665-692, November.
  4. Werner Antweiler & Daniel Trefler, 2002. "Increasing Returns and All That: A View from Trade," American Economic Review, American Economic Association, vol. 92(1), pages 93-119, March.
  5. Hess, Wolfgang & Persson, Maria, 2010. "The Duration of Trade Revisited: Continuous-Time vs. Discrete-Time Hazards," Working Paper Series, Research Institute of Industrial Economics 829, Research Institute of Industrial Economics.
  6. Wolfgang Hess & Maria Persson, 2012. "The duration of trade revisited," Empirical Economics, Springer, vol. 43(3), pages 1083-1107, December.
  7. repec:pse:psecon:2009-35 is not listed on IDEAS
  8. Timothy J. Kehoe & Kim J. Ruhl, 2006. "How Important is the New Goods Margin in International Trade?," 2006 Meeting Papers, Society for Economic Dynamics 733, Society for Economic Dynamics.
  9. Tibor Besedes & Thomas J. Prusa, 2003. "On the Duration of Trade," NBER Working Papers 9936, National Bureau of Economic Research, Inc.
  10. Paul Brenton & Christian Saborowski & Erik von Uexkull, 2010. "What Explains the Low Survival Rate of Developing Country Export Flows?," World Bank Economic Review, World Bank Group, World Bank Group, vol. 24(3), pages 474-499, December.
  11. 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.
  12. Marc J. Melitz, 2003. "The Impact of Trade on Intra-Industry Reallocations and Aggregate Industry Productivity," Econometrica, Econometric Society, Econometric Society, vol. 71(6), pages 1695-1725, November.
  13. James E. Rauch & Joel Watson, 1999. "Starting Small in an Unfamiliar Environment," NBER Working Papers 7053, National Bureau of Economic Research, Inc.
  14. 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.
  15. 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.
  16. repec:hal:wpaper:halshs-00575005 is not listed on IDEAS
  17. Besedes, Tibor & Prusa, Thomas J., 2011. "The role of extensive and intensive margins and export growth," Journal of Development Economics, Elsevier, vol. 96(2), pages 371-379, November.
  18. Leonardo Iacovone & Ferdinand Rauch & L. Alan Winters, 2010. "Trade as an Engine of Creative Destruction: Mexican Experience with Chinese Competition," CEP Discussion Papers dp0999, Centre for Economic Performance, LSE.
  19. Tibor Besedes, . "A Search Cost Perspective on Duration of Trade," Departmental Working Papers, Department of Economics, Louisiana State University 2006-12, Department of Economics, Louisiana State University.
  20. 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.
  21. Besedes, Tibor, 2011. "Export differentiation in transition economies," Economic Systems, Elsevier, vol. 35(1), pages 25-44, March.
  22. Mélise Jaud & Madina Kukenova & Martin Strieborny, 2009. "Financial dependence and intensive margin of trade," PSE Working Papers halshs-00575005, HAL.
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Cited by:
  1. 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, Agricultural and Applied Economics Association 124706, Agricultural and Applied Economics Association.
  2. 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.

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