Click here for search results
Economic performance under NAFTA : a firm-level analysis of the trade-productivity linkages, Volume 1
Author:De Hoyos, Rafael E.; Iacovone, Leonardo; Country:World; Mexico; Canada; United States;
Date Stored:2011/05/17Document Date:2011/05/01
Document Type:Policy Research Working PaperSubTopics:Economic Theory & Research; Free Trade; Labor Policies; Knowledge for Development; Microfinance
Language:EnglishRegion:The World Region; Latin America & Caribbean; Rest Of The World
Report Number:WPS5661Collection Title:Policy Research working paper ; no. WPS 5661
Volume No:1  

Summary: Did the North American Free Trade Agreement make Mexican firms more productive? If so, through which channels? This paper addresses these questions by deploying an innovative microeconometric approach that disentangles the various channels through which integration with the global markets (via international trade) can affect firm-level productivity. The results show that the North American Free Trade Agreement stimulated the productivity of Mexican plants via: (1) an increase in import competition and (2) a positive effect on access to imported intermediate inputs. However, the impact of trade reforms was not identical for all integrated firms, with fully integrated firms (i.e. firms simultaneously exporting and importing) benefiting more than other integrated firms. Contrary to previous results, once self-selection problems are solved, the analysis finds a rather weak relationship between exports and productivity growth.

Official Documents
Official, scanned versions of documents (may include signatures, etc.)
File TypeDescriptionFile Size (mb)
PDF 36 pagesOfficial version*2.52 (approx.)
TextText version**
How To Order

* The official version is derived from scanning the final, paper copy of the document and is the official,
archived version including all signatures, charts, etc.
** The text version is the OCR text of the final scanned version and is not an accurate representation of the final text.
It is provided solely to benefit users with slow connectivity.

Permanent URL for this page:

© 2016 The World Bank Group, All Rights Reserved. Legal