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Has NAFTA changed North American trade?

Author

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  • David M. Gould

Abstract

The controversy over the success or failure of NAFTA is now bleeding over into discussion about the benefits of extending the trade accord to other countries in the Western Hemisphere. The NAFTA debate has typically focused on its impact on employment. But to understand the overall economic effects of NAFTA, it is important to first determine its impact on trade. In this article, David Gould explores NAFTA's effects on North America's trading patterns since its implementation in 1994. He finds that although it is difficult to distinguish any effect of NAFTA on trade between Canada and Mexico or Canada and the United States, trade between the United States and Mexico has significantly increased since 1994.

Suggested Citation

  • David M. Gould, 1998. "Has NAFTA changed North American trade?," Economic and Financial Policy Review, Federal Reserve Bank of Dallas, issue Q 1, pages 12-23.
  • Handle: RePEc:fip:fedder:y:1998:i:q1:p:12-23
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    File URL: http://www.dallasfed.org/assets/documents/research/er/1998/er9801b.pdf
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    References listed on IDEAS

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    1. Patrick J. Kehoe & Timothy J. Kehoe, 1994. "Capturing NAFTA's impact with applied general equilibrium models," Quarterly Review, Federal Reserve Bank of Minneapolis, issue Spr, pages 17-34.
    2. Yeats,Alexander James, 1997. "Does Mercosur's trade performance raise concerns about the effects of regional trade arrangements?," Policy Research Working Paper Series 1729, The World Bank.
    3. Christopher J. Neely, 1996. "The giant sucking sound: did NAFTA devour the Mexican peso?," Review, Federal Reserve Bank of St. Louis, issue Jul, pages 33-48.
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    6. David M. Gould, 1996. "Distinguishing NAFTA from the peso crisis," Southwest Economy, Federal Reserve Bank of Dallas, issue Sep, pages 6-10.
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    Citations

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    Cited by:

    1. Thomas L. Vollrath & Mark J. Gehlhar & Charles B. Hallahan, 2009. "Bilateral Import Protection, Free Trade Agreements, and Other Factors Influencing Trade Flows in Agriculture and Clothing," Journal of Agricultural Economics, Wiley Blackwell, vol. 60(2), pages 298-317.
    2. Biró, Flóra Panna & Márkus, Ádám & Erdey, László, 2016. "A kormányzás hatása a közvetlen külföldi tőkebefektetésekre Latin-Amerikában," MPRA Paper 80025, University Library of Munich, Germany.
    3. Pennelope Pacheco-Lopez & Anthony P. Thirlwall, 2004. "Trade liberalisation in Mexico: rhetoric and reality," BNL Quarterly Review, Banca Nazionale del Lavoro, vol. 57(229), pages 141-167.
    4. William C. Gruben, 2001. "Was NAFTA behind Mexico's high maquiladora growth?," Economic and Financial Policy Review, Federal Reserve Bank of Dallas, issue Q III, pages 11-21.
    5. Friederike Koehler-Geib & Susana M. Sanchez, 2015. "Costa Rica Five Years after CAFTA-DR," World Bank Publications, The World Bank, number 22013.
    6. World Bank, 2014. "Costa Rica : Five Years after CAFTA-DR, Assessing Early Results for the Costa Rican Economy," World Bank Other Operational Studies 20010, The World Bank.
    7. Mark Funk & Erick Elder & Vincent W. Yao & Ashvin Vibhakar, 2006. "Intra-NAFTA trade and surface traffic: a very disaggregated view," Regional Economic Development, Federal Reserve Bank of St. Louis, issue Oct, pages 87-99.
    8. Malaga, Jaime E. & Williams, Gary W. & Fuller, Stephen W., 2001. "US-Mexico fresh vegetable trade: the effects of trade liberalization and economic growth," Agricultural Economics, Blackwell, vol. 26(1), pages 45-55, October.
    9. Craig Depken & Jon Ford, 1999. "NAFTA as a Means of Raising Rivals' Costs," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 15(2), pages 103-113, September.
    10. Bedassa Tadesse & Bichaka Fayissa, 2008. "The impact of African growth and opportunity act (Agoa) on U.S. imports from Sub-Saharan Africa (SSA)," Journal of International Development, John Wiley & Sons, Ltd., vol. 20(7), pages 920-941.
    11. Lee, Young-Jae & Kennedy, P. Lynn, 2013. "The Impact Of Nafta On U.S. Agriculture: An Ex-Post, Binary Variable Approach," 2013 Annual Meeting, February 2-5, 2013, Orlando, Florida 142132, Southern Agricultural Economics Association.
    12. Aggarwal, Raj & Kyaw, NyoNyo A., 2005. "Equity market integration in the NAFTA region: Evidence from unit root and cointegration tests," International Review of Financial Analysis, Elsevier, vol. 14(4), pages 393-406.
    13. Mary E. Burfisher & Sherman Robinson & Karen Thierfelder, 2001. "The Impact of NAFTA on the United States," Journal of Economic Perspectives, American Economic Association, vol. 15(1), pages 125-144, Winter.
    14. Fukao, Kyoji & Okubo, Toshihiro & Stern, Robert M., 2003. "An econometric analysis of trade diversion under NAFTA," The North American Journal of Economics and Finance, Elsevier, vol. 14(1), pages 3-24, March.
    15. 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.
    16. Howard J. Wall, 2003. "NAFTA and the geography of North American trade," Review, Federal Reserve Bank of St. Louis, issue Mar, pages 13-26.
    17. Azim M Sadikov, 2008. "External Tariff Liberalization in CARICOM; A Commodity-Level Analysis," IMF Working Papers 08/33, International Monetary Fund.
    18. Ayhan Kose & Christopher M Towe & Guy M Meredith, 2004. "How Has Nafta Affected the Mexican Economy? Review and Evidence," IMF Working Papers 04/59, International Monetary Fund.
    19. repec:eee:jfpoli:v:69:y:2017:i:c:p:123-134 is not listed on IDEAS
    20. Ramirez, Miguel D., 2003. "Mexico under NAFTA: a critical assessment," The Quarterly Review of Economics and Finance, Elsevier, vol. 43(5), pages 863-892.
    21. Agama, Laurie-Ann & McDaniel, Christine A., 2002. "The NAFTA Preference and U.S.-Mexico Trade," Working Papers 15873, United States International Trade Commission, Office of Economics.
    22. Bichaka Fayissa & Badassa Tadasse & Andrew McColley, 2008. "Does a Unilateral Policy Change Promote Trade? The Case of African Growth and Opportunity Act," Working Papers 200801, Middle Tennessee State University, Department of Economics and Finance.
    23. Darrat, Ali F. & Zhong, Maosen, 2005. "Equity market linkage and multinational trade accords: The case of NAFTA," Journal of International Money and Finance, Elsevier, vol. 24(5), pages 793-817, September.

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