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Intra-NAFTA Trade in Mid-South Industries: A Gravity Model

Author

Listed:
  • Funk, Mark

    (U AR, Little Rock)

  • Elder, Erick

    (U AR, Little Rock)

  • Yao, Vincent

    (U AR, Little Rock)

  • Vibhakar, Ashvin

    (U AR, Little Rock)

Abstract

Using a rich dataset on traffic between members of the North American Free Trade Agreement (NAFTA), this paper examines industry-level trade growth since the implementation of NAFTA for five Mid-South states. Gravity model results show significant disparities across states and industries. For exports within the NAFTA region, the results show large differences in growth rates both between states and between industries. For imports within the NAFTA region, the growth rates vary more between industries than between states. Our results also confirm the importance of intra-industry trade in the U.S.-Mexico trade relationship and suggest a considerable relocation of production linked to trade between NAFTA members.

Suggested Citation

  • Funk, Mark & Elder, Erick & Yao, Vincent & Vibhakar, Ashvin, 2006. "Intra-NAFTA Trade in Mid-South Industries: A Gravity Model," The Review of Regional Studies, Southern Regional Science Association, vol. 36(2), pages 205-220.
  • Handle: RePEc:rre:publsh:v:36:y:2006:i:2:p:205-20
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    File URL: http://journal.srsa.org/ojs/index.php/RRS/article/view/122/72
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    References listed on IDEAS

    as
    1. James E. Anderson & Eric van Wincoop, 2003. "Gravity with Gravitas: A Solution to the Border Puzzle," American Economic Review, American Economic Association, vol. 93(1), pages 170-192, March.
    2. 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.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    Exports; Free Trade; Import; Regions; Trade;

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • R32 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Other Spatial Production and Pricing Analysis

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