Economic Effects of NAFTA on Mexico

Dominick Salvatore

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Global trade and economics International Relations in Latin America Canadian Policy and Governance

Abstract

The economic effects of NAFTA on Mexico have been discussed and measured mostly in terms of its effect on employment on both sides of the border and by the increase in Mexico-US trade and investments before and after NAFTA. These are the wrong ways to measure the effects of a free trade area on a member state. In this paper, I will first discuss the theoretically correct method of evaluating the economic effects of the formation of a free trade area in general and then apply this method to correctly measure the effects of NAFTA on Mexico.

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References

2014The Customs Union Issue 1960The Theory of Customs Unions: A General Survey 1980The Theory of Customs Unions 1992North American free trade: issues and recommendations 2004How Has NAFTA Affected the Mexican Economy? Review and Evidence 1994The North American Free Trade Agreement

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2012Patterns and Determinants of Intra Industry Trade for the Mexican Non-Maquiladora Manufacturing Industry

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