NAFTA trade (and some extra NAFTA trade) in value added and its distribution, 1995-2011

Artikel

The trade deficit of the USA with its NAFTA partners, Mexico and Canada, increased since 1994 from 21,991 to 119,257 million dollars in 2013 (UNCOMTRADE, 2015. http://comtrade.un.org/db), and most of this increase is explained by the growth in the volume of commerce between Mexico and the USA. Nonetheless, since the mid-1990s Mexico has been experiencing its lowest economic growth rates. By using the World Input Output Database and the Input-Output Analysis, this paper presents an estimate of the intra-NAFTA trade flows in terms of value added and its distribution among both labor and capital; labor by skill level; and content of persons engaged. The findings show that trade between the NAFTA members is quite different concerning value added. In 1995 the USA had a trade deficit of 30,351 million dollars with Canada, of which 6384 million dollars was a surplus in favor of Canada in terms of value added. Similarly, the same year the USA had a deficit of 4276 million dollars with Mexico that became a surplus for the latter of 4561 million dollars in terms of value added. For the following years, until 2011, a similar pattern was observed. The distribution of this value added between capital and labor compensations tends to favor USA and Canadian workers, especially middle-skilled labor, and the sector that tends to have the lowest share is the low-skilled Mexican and Canadian workers. Even more, the average labor compensations per hour grew less for the three types of Mexican workers.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Journal: Journal of Economic Structures ; ISSN: 2193-2409 ; Volume: 5 ; Year: 2016 ; Issue: 27 ; Pages: 1-22 ; Heidelberg: Springer

Classification and Topics

• Classification: Wirtschaft
• Subject: Value added in trade ; Income distribution ; NAFTA

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Cervantes-Martínez, Rosario ; Villaseñor-Becerra, Jorge ; Romero-Morett, Martín
• Event: Veröffentlichung
• (who): Springer
• (where): Heidelberg
• (when): 2016

Further information

• DOI: doi:10.1186/s40008-016-0059-2
• Handle: http://hdl.handle.net/10419/194936
• Last update: 10.03.2025, 11:41 AM CET