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  • S Van Wijnbergen
  • Anthony J. Venables

Much of the excitement around the North American Free Trade Agreement (NAFTA) has been generated by anticipations of a strongly foreign investment response. Nevertheless, the plethora of applied papers about the NAFTA have all either ignored DFI or kept it exogenous. In this paper we provide support, with empirical underpinning, for the anticipation of a strong DFI response; however this support is qualified by the demonstration that no such DFI response will be forthcoming unless the NAFTA is used to drastically reform the agriculture and services sectors in Mexico.

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File URL: http://cep.lse.ac.uk/pubs/download/DP0177.pdf
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Paper provided by Centre for Economic Performance, LSE in its series CEP Discussion Papers with number dp0177.

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Date of creation: Nov 1993
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Handle: RePEc:cep:cepdps:dp0177
Contact details of provider: Web page: http://cep.lse.ac.uk/_new/publications/series.asp?prog=CEP

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  1. Levy, Santiago & Wijnbergen, Sweder van, 1994. "Labor markets, migration and welfare Agriculture in the North-American Free Trade Agreement," Journal of Development Economics, Elsevier, vol. 43(2), pages 263-278, April.
  2. Levy, Santiago & van Wijnbergen, Sweder, 1992. "Transition problems in economic reform : agriculture in the Mexico - U.S. free trade agreement," Policy Research Working Paper Series 967, The World Bank.
  3. Magnus Blomstrom & Robert E. Lipsey & Lennart Ohlsson, 1989. "What Do Rich Countries Trade with Each Other? R&D and the Composition of U.S. and Swedish Trade," NBER Working Papers 3140, National Bureau of Economic Research, Inc.
  4. Krugman, Paul & Venables, Anthony J, 1990. "Integration and the Competitiveness of Peripheral Industry," CEPR Discussion Papers 363, C.E.P.R. Discussion Papers.
  5. Blomstrom, Magnus & Wolff, E.N., 1989. "Multinational Corporations And Productivity Convergence In Mexico," Working Papers 89-28, C.V. Starr Center for Applied Economics, New York University.
  6. Roland-Holst, David & Reinert, Kenneth A. & Shiells, Clinton R., 1994. "NAFTA liberalization and the role of nontariff barriers," The North American Journal of Economics and Finance, Elsevier, vol. 5(2), pages 137-168.
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