Export Growth of NAFTA Members, Intra-industry Trade and Adjustment

Details

Serval ID
serval:BIB_BECB2E81C656
Type
Article: article from journal or magazin.
Collection
Publications
Institution
Title
Export Growth of NAFTA Members, Intra-industry Trade and Adjustment
Journal
Global Business and Economics Review
Author(s)
Brülhart M., Thorpe M.
ISSN
1097-4954
Publication state
Published
Issued date
2001
Peer-reviewed
Oui
Volume
3
Number
1
Pages
94-110
Language
english
Abstract
This paper looks at the issue of labour market adjustment in the context of expanded international trade of NAFTA economies both within the region and more generally. The study focuses on the period 1990-1998, a time frame that covers several years prior to and after the formation of NAFTA. Trade flows of the member countries are analysed using measures of static intra-industry trade (IIT) and dynamic (marginal) intra-industry trade (MIIT). Inferences are drawn from these results on the basis of the ''smooth adjustment hypothesis'' according to which IIT entails relatively low factor-market adjustment costs. The paper concludes that for trade flows within NAFTA, less labour market adjustment pressures are being experienced by the US and Mexico in terms of their relationship. A similar observation can be made for US-Canada trade. Trade between Canada and Mexico is seen as causing relatively more adjustment pressure compared to other intra-regional flows. In terms of the trade of NAFTA members with major trading partners outside of the group, the results are mixed.
Keywords
North American Free Trade Agreement, labour market adjustment, international trade, NAFTA, trade flows, export growth, intra-industry trade, United States, Mexico, Canada.
Create date
19/11/2007 10:46
Last modification date
20/08/2019 15:33
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