Arbeitspapier

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 for 1986 to 2000 and introducing a number of refinements in the computation of the total factor productivity and estimation methods, it shows that the productivity gap increased and converged to a higher gap level. Moreover, it finds no clear evidence for NAFTA's contribution to the TFP convergence. These findings are in a sharp contrast with that of the previous literature. The paper also finds that under NAFTA the industries which have smaller initial productivity gap experienced less increasing productivity gap than the industries which have larger initial productivity gap.

Language
Englisch

Bibliographic citation
Series: HEI Working Paper ; No. 26/2007

Classification
Wirtschaft
Economic Integration
Economic Growth of Open Economies
Subject
NAFTA
Productivity
Handelsregionalismus
Freihandelszone
Produktivität
Verarbeitendes Gewerbe
Entwicklungskonvergenz
Mexiko
USA

Event
Geistige Schöpfung
(who)
Ito, Tadashi
Event
Veröffentlichung
(who)
Graduate Institute of International Studies
(where)
Geneva
(when)
2007

Handle
Last update
10.03.2025, 11:43 AM CET

Data provider

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Object type

  • Arbeitspapier

Associated

  • Ito, Tadashi
  • Graduate Institute of International Studies

Time of origin

  • 2007

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