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NAFTA and productivity convergence between Mexico and the US

This paper studies whether NAFTA contributed to the productivity convergence between Mexico and the US. Using data from the manufacturing sector and introducing a number of refinements in the computation of the total factor productivity and estimation methods, it shows that NAFTA is associated with a higher speed of convergence of productivity levels than the previous literature found. The paper also finds that under NAFTA the industries which have smaller productivity gap experienced higher speed of convergence (catch-up) than the industries which have larger productivity gap.

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File URL: http://repec.graduateinstitute.ch/pdfs/Working_papers/HEIWP27-2007.pdf
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Paper provided by Economics Section, The Graduate Institute of International Studies in its series IHEID Working Papers with number 26-2007.

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Length: 28
Date of creation: 11 Oct 2007
Date of revision: 27 Nov 2007
Handle: RePEc:gii:giihei:heiwp27-2007
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  20. Holger Spamann, 2006. "The Myth of 'Rebalancing' Retaliation in WTO Dispute Settlement Practice," Journal of International Economic Law, Oxford University Press, vol. 9(1), pages 31-79, March.
  21. Klein, Benjamin & Crawford, Robert G & Alchian, Armen A, 1978. "Vertical Integration, Appropriable Rents, and the Competitive Contracting Process," Journal of Law and Economics, University of Chicago Press, vol. 21(2), pages 297-326, October.
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  24. Hendricks, Kenneth & Wilson, Charles, 1985. "The War of Attrition in Discrete Time," Working Papers 85-32, C.V. Starr Center for Applied Economics, New York University.
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  26. Hungerford, Thomas L., 1991. "GATT: A cooperative equilibrium in a noncooperative trading regime?," Journal of International Economics, Elsevier, vol. 31(3-4), pages 357-369, November.
  27. Admati, Anat R & Perry, Motty, 1987. "Strategic Delay in Bargaining," Review of Economic Studies, Wiley Blackwell, vol. 54(3), pages 345-64, July.
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  29. Goldstein, Judith & Kahler, Miles & Keohane, Robert O. & Slaughter, Anne-Marie, 2000. "Introduction: Legalization and World Politics," International Organization, Cambridge University Press, vol. 54(03), pages 385-399, June.
  30. Rodrik, Dani, 1995. "Political economy of trade policy," Handbook of International Economics, in: G. M. Grossman & K. Rogoff (ed.), Handbook of International Economics, edition 1, volume 3, chapter 28, pages 1457-1494 Elsevier.
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