Intra-industry trade effects on Mexican manufacturing productivity before and after NAFTA
This paper examines the effects of intra-industry imports on total factor productivity (TFP). Employing a new sample of 25 Mexican manufacturing industries with annual data from 1984 to 2000, interesting panel data results emerge. First, we find the positive impact of intra-industry imports on productivity to be substantially larger after NAFTA. Second, relatively labor-intensive industries have benefited the most from these spillovers. Third, these results are very robust to business cycle controls and estimation methods. Our findings suggest that the expansion of technology in differentiated products has increased the technology spillovers from the US and Canada into Mexico.
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Volume (Year): 20 (2011)
Issue (Month): 1 ()
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