The Role of NAFTA in the Economic Development of Mexico: Results from Modern Data
The paper analyzes certain crucial aspects like, effect of NAFTA (North American Free Trade Agreement) on the Mexican economy after 13-15 years of its advent and benefits enjoyed by the participants as a result of economic integration. By analyzing the effects of NAFTA, the paper attempts to test the validity of economic theories on international trade. While there are some profuse criticism of NAFTA on either side of the border, it is found that the improvement of labor conditions, in terms of more jobs and a higher wage rate in Mexico, is a significant gain from NAFTA. The paper consists of data analysis and uses some prior theoretical arguments such as that of Factor Price Equalization.
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Volume (Year): VI (2007)
Issue (Month): 3 (May)
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