Market Access and Welfare under Free Trade Agreements: Textiles under NAFTA

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Serval ID
serval:BIB_3F8772AB5E64
Type
Article: article from journal or magazin.
Collection
Publications
Institution
Title
Market Access and Welfare under Free Trade Agreements: Textiles under NAFTA
Journal
World Bank Economic Review
Author(s)
Cadot O., Carrère C., De Melo J., Portugal-Pérez A.
ISSN
0258-6770
Publication state
Published
Issued date
2005
Peer-reviewed
Oui
Volume
19
Number
3
Pages
379-405
Language
english
Abstract
This paper estimates the effective market access granted under NAFTA in textiles and apparel by combining two approaches. First, we estimate the effect of tariff preferences and rules of origin on the border prices of Mexican final goods exported to the US and of US intermediates exported to Mexico. We find that one third of the estimated rise in the border price of Mexican apparel products compensates for the cost of complying with NAFTA's rules of origin. We also find that the price of US intermediates exported to Mexico is raised significantly by the presence of rules of origin downstream. Second, simulations from a structural model inspired by our econometric estimates, suggest little market access improvement for Mexican exporters.
Keywords
NAFTA, rules of origin, regional integration
Web of science
Open Access
Yes
Create date
19/11/2007 11:17
Last modification date
01/10/2019 7:17
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