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The Role of NAFTA and Returns to Scale in Export Duration

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  • Tibor Besedeš

Abstract

While exports within NAFTA face a lower hazard of ceasing, its onset has increased the hazard for Mexican and US intra NAFTA exports. Intra NAFTA exports still enjoy a lower hazard relative to exports to non-members. While NAFTA did affect the hazard for Canada's exports in the short run, its effect on Mexican and US exports is persistent. Exports of increasing-returns-to-scale (IRS) manufacturing products face the highest hazard in the case of Canada and Mexico, while IRS natural resource products have the highest hazard for Mexico. The effect of NAFTA on the returns to scale product types is exporter specific. (JEL codes: F10, F14) Copyright The Author 2012. Published by Oxford University Press on behalf of Ifo Institute for Economic Research, Munich. All rights reserved. For permissions, please email: journals.permissions@oup.com, Oxford University Press.

Suggested Citation

  • Tibor Besedeš, 2013. "The Role of NAFTA and Returns to Scale in Export Duration," CESifo Economic Studies, CESifo Group, vol. 59(2), pages 306-336, June.
    • Handle: RePEc:oup:cesifo:v:59:y:2013:i:2:p:306-336
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    File URL: http://hdl.handle.net/10.1093/cesifo/ifs001
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    Cited by:

    1. Jaud,Melise & Kukenova,Madina & Strieborny,Martin, 2023. "Export Survival : The Role of Banks and Stock Markets," Policy Research Working Paper Series 10403, The World Bank.
    2. Tibor Besedeš & Thomas J. Prusa, 2013. "Antidumping and the Death of Trade," NBER Working Papers 19555, National Bureau of Economic Research, Inc.
    3. Mélise Jaud & Madina Kukenova & Martin Strieborny, 2009. "Financial dependence and intensive margin of trade," PSE Working Papers halshs-00575005, HAL.
    4. Kwabena Nkansah & Paul Owusu Takyi & Daniel Sakyi & Frank Adusah-Poku, 2022. "Economic Integration Agreements and Export Survival in Ghana," Journal of African Trade, Springer, vol. 9(1), pages 1-22, December.
    5. Nitsch, Volker & Besedes, Tibor, 2013. "Trade Integration and the Fragility of Trade Relationships: A Product Level Perspective," VfS Annual Conference 2013 (Duesseldorf): Competition Policy and Regulation in a Global Economic Order 79977, Verein für Socialpolitik / German Economic Association.
    6. 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.
    7. Cadot, Olivier & Iacovone, Leonardo & Pierola, Martha Denisse & Rauch, Ferdinand, 2013. "Success and failure of African exporters," Journal of Development Economics, Elsevier, vol. 101(C), pages 284-296.
    8. De Hoyos, Rafael E. & Iacovone, Leonardo, 2013. "Economic Performance under NAFTA: A Firm-Level Analysis of the Trade-productivity Linkages," World Development, Elsevier, vol. 44(C), pages 180-193.

    More about this item

    JEL classification:

    • F10 - International Economics - - Trade - - - General
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade

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