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Lessons from NAFTA for Latin America and the Caribbean

Author

Listed:
  • Daniel Lederman
  • William F. Maloney
  • Luis Servén

Abstract

Analyzing the experience of Mexico under the North American Free Trade Agreement (NAFTA), "Lessons from NAFTA" aims to provide guidance to Latin American and Caribbean countries considering free trade agreements with the United States. The authors conclude that the treaty raised external trade and foreign investment inflows and had a modest effect on Mexico's average income per person. It is likely that the treaty also helped achieve a modest reduction in poverty and an improvement in job quality.

Suggested Citation

  • Daniel Lederman & William F. Maloney & Luis Servén, 2004. "Lessons from NAFTA for Latin America and the Caribbean," World Bank Publications, The World Bank, number 14457.
  • Handle: RePEc:wbk:wbpubs:14457
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    File URL: https://openknowledge.worldbank.org/bitstream/handle/10986/14457/344350PAPER0LA101official0use0only1.pdf?sequence=1
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    References listed on IDEAS

    as
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    7. Albuquerque, Rui & Loayza, Norman & Serven, Luis, 2005. "World market integration through the lens of foreign direct investors," Journal of International Economics, Elsevier, pages 267-295.
    8. Eduardo Levy Yeyati & Ernesto H. Stein & Christian Daude, 2003. "Regional Integration and the Location of FDI," Research Department Publications 4343, Inter-American Development Bank, Research Department.
    9. Piazolo, Daniel & Kokta, Robert M. & Buch, Claudia M., 2001. "Does the East Get What Would Otherwise Flow to the South? FDI Diversion in Europe," Kiel Working Papers 1061, Kiel Institute for the World Economy (IfW).
    10. Albuquerque, Rui & Loayza, Norman & Serven, Luis, 2005. "World market integration through the lens of foreign direct investors," Journal of International Economics, Elsevier, pages 267-295.
    11. Gordon H. Hanson & Raymond J. Mataloni & Matthew J. Slaughter, 2001. "Expansion Strategies of U.S. Multinational Firms," BEA Papers 0012, Bureau of Economic Analysis.
    12. Calderon, Cesar & Loayza, Norman & Serven, Luis, 2003. "Do capital flows respond to risk and return?," Policy Research Working Paper Series 3059, The World Bank.
    13. Leamer, Edward E. & Guerra, Alfonso & Kaufman, Martin & Segura, Boris, 1995. "How does the North American Free Trade Agreement (NAFTA) affect Central America?," Policy Research Working Paper Series 1464, The World Bank.
    14. Kyriacos Aristotelous & Stilianos Fountas, 1996. "An Empirical Analysis of Inward Foreign Direct Investment Flows in the EU with Emphasis on the Market Enlargement Hypothesis," Journal of Common Market Studies, Wiley Blackwell, vol. 34(4), pages 571-583, December.
    15. Gual, Jordi & Martín, Carmela, 1994. "Trade and Foreign Direct Investment with Central and Eastern Europe: Its Impact on Spain," CEPR Discussion Papers 1006, C.E.P.R. Discussion Papers.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Paula Auerbach & María Eugenia Genoni & Carmen Pagés, 2005. "Social Security Coverage and the Labor Market in Developing Countries," IDB Publications (Working Papers) 1111, Inter-American Development Bank.
    2. Medvedev, Denis, 2006. "Beyond trade : the impact of preferential trade agreements on foreign direct investment inflows," Policy Research Working Paper Series 4065, The World Bank.
    3. Pack, Howard & Saggi, Kamal, 2006. "The case for industrial policy : a critical survey," Policy Research Working Paper Series 3839, The World Bank.
    4. Julio Huato, 2005. "Maquiladoras and Standard of Living in Mexico Before and After NAFTA," Development and Comp Systems 0508006, EconWPA.
    5. Denis Medvedev, 2010. "Preferential trade agreements and their role in world trade," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), pages 199-222.
    6. Dinkelman, Taryn & Ranchhod, Vimal, 2012. "Evidence on the impact of minimum wage laws in an informal sector: Domestic workers in South Africa," Journal of Development Economics, Elsevier, pages 27-45.
    7. Paula Auerbach & María Eugenia Genoni & Carmen Pagés, 2005. "Social Security Coverage and the Labor Market in Developing Countries," IDB Publications (Working Papers) 1111, Inter-American Development Bank.
    8. Aaron Tornell & Frank Westermann & Lorenza Martinez, 2004. "The Positive Link Between Financial Liberalization, Growth and Crises," NBER Working Papers 10293, National Bureau of Economic Research, Inc.
    9. Aaron Tornell & Frank Westermann & Lorenzo Martinez, 2004. "Nafta and Mexico Less-than-Steller Performance," UCLA Economics Working Papers 833, UCLA Department of Economics.
    10. Popli, Gurleen, 2006. "The rising wage inequality in Mexico, 1984-2000: A distributional analysis," MPRA Paper 399, University Library of Munich, Germany, revised 2006.
    11. Voicu, Alexandru, 2008. "Adding Rungs to the Exporting Ladder: Plant-Level Exporting Dynamics and Total Factor Productivity Growth," IZA Discussion Papers 3807, Institute for the Study of Labor (IZA).
    12. Jorge Toro & Gloria Alonso & Pilar Esguerra & Daira Garrido, 2006. "El Impacto Del Tratado Del Libre Comercio Con Estados Unidos (Tlc) En La Balanza De Pagos Hasta 2010," BORRADORES DE ECONOMIA 002511, BANCO DE LA REPÚBLICA.
    13. Patricio Aroca & Mariano Bosch & William F. Maloney, 2005. "Spatial Dimensions of Trade Liberalization and Economic Convergence: Mexico 1985--2002," World Bank Economic Review, World Bank Group, vol. 19(3), pages 345-378.
    14. Angel Calderon-Madrid & Alexandru Voicu, 2011. "The NAFTA tide: Lifting the larger and better boats," The Journal of International Trade & Economic Development, Taylor & Francis Journals, pages 467-505.
    15. A.R. Kemal, 2004. "Exploring Pakistan’s Regional Economic Cooperation Potential," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 43(4), pages 313-334.
    16. Angel Calderon-Madrid & Alexandru Voicu, 2011. "The NAFTA tide: Lifting the larger and better boats," The Journal of International Trade & Economic Development, Taylor & Francis Journals, pages 467-505.
    17. Aaron Tornell & Frank Westermann & Lorenza Martínez, 2004. "NAFTA and Mexico's Economic Performance," CESifo Working Paper Series 1155, CESifo Group Munich.
    18. Aaron Tornell, 2003. "Liberalization, Growth and Financial Crises (October 2003)," UCLA Economics Online Papers 276, UCLA Department of Economics.

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