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Trade creation and trade diversion under NAFTA
Mexican perspective
Autor: Justyna Wieloch
Liczba stron: 170
Rok wydania: 2020
ISBN: 978-83-8220-193-2
e-ISBN: 978-83-8220-194-9
Dostępność: Otwarty dostęp
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The monograph is devoted to an in-depth and multithreaded analysis of the effects of trade integration of countries with different levels of economic development. It presents the results of research on the profitability of international trade liberalization from the perspective of a less developed country. An example is the North American Free Trade Agreement – unique in the world due to the asymmetry of development of the economies of the participating countries. An assessment of the impact of integration on Mexico was presented based on extensive literature and empirical studies. The publication is one of the first scientific studies in Poland presenting such a comprehensive investigation of economic integration processes on the North American continent.
Foreword 9
1. Economic premises behind trade integration 15
1.1. Trade integration: notion and forms 15
1.1.1. Definitions of trade integration 15
1.1.2. Forms of integration according to Balassa 18
1.1.3. Forms of integration according to the WTO classification 21
1.2. Integration: premises and drivers 23
1.3. Effects of integration of countries at a different level of economic development under conditions of perfect competition 24
1.3.1. Internal and external comparative advantage 27
1.3.2. Multi-product comparative advantage 29
1.3.3. Income divergence and convergence 31
1.4. Effects of integration in conditions of imperfect competition 35
1.5. Summary 37
2. Origins and main provisions of NAFTA 39
2.1. Origins 39
2.2. NAFTA: objectives, principles, and institutions 47
2.3. Trade in goods: liberalisation and control mechanisms 49
2.3.1. General regulations 50
2.3.1.1. National treatment and market access for goods 50
2.3.1.2. Rules of origin 53
2.3.1.3. Technical barriers to trade 55
2.4. Investment and services 56
2.4.1. Investment 57
2.4.2. Services 59
2.4.2.1. Telecommunications and financial services 60
2.4.2.2. Temporary entry for business persons 61
2.5. Summary 62
3. Trade effects of Mexico’s membership in NAFTA 65
3.1. Overview of empirical studies 65
3.2. Impact of trade agreements on Mexico’s foreign trade: a study using the gravity model 71
3.2.1. Description of a gravity model 71
3.2.2. Results of estimations and descriptive statistics 78
3.3. Shifts in Mexico’s foreign trade flows after the establishing of NAFTA 88
3.3.1. Changes in Mexico’s exports 97
3.3.2. Changes in Mexico’s imports 111
3.4. Summary 124
Conclusion 125
Afterword 127
Bibliography 129
List of figures 135
List of tables 137
Appendices 139
1. Economic premises behind trade integration 15
1.1. Trade integration: notion and forms 15
1.1.1. Definitions of trade integration 15
1.1.2. Forms of integration according to Balassa 18
1.1.3. Forms of integration according to the WTO classification 21
1.2. Integration: premises and drivers 23
1.3. Effects of integration of countries at a different level of economic development under conditions of perfect competition 24
1.3.1. Internal and external comparative advantage 27
1.3.2. Multi-product comparative advantage 29
1.3.3. Income divergence and convergence 31
1.4. Effects of integration in conditions of imperfect competition 35
1.5. Summary 37
2. Origins and main provisions of NAFTA 39
2.1. Origins 39
2.2. NAFTA: objectives, principles, and institutions 47
2.3. Trade in goods: liberalisation and control mechanisms 49
2.3.1. General regulations 50
2.3.1.1. National treatment and market access for goods 50
2.3.1.2. Rules of origin 53
2.3.1.3. Technical barriers to trade 55
2.4. Investment and services 56
2.4.1. Investment 57
2.4.2. Services 59
2.4.2.1. Telecommunications and financial services 60
2.4.2.2. Temporary entry for business persons 61
2.5. Summary 62
3. Trade effects of Mexico’s membership in NAFTA 65
3.1. Overview of empirical studies 65
3.2. Impact of trade agreements on Mexico’s foreign trade: a study using the gravity model 71
3.2.1. Description of a gravity model 71
3.2.2. Results of estimations and descriptive statistics 78
3.3. Shifts in Mexico’s foreign trade flows after the establishing of NAFTA 88
3.3.1. Changes in Mexico’s exports 97
3.3.2. Changes in Mexico’s imports 111
3.4. Summary 124
Conclusion 125
Afterword 127
Bibliography 129
List of figures 135
List of tables 137
Appendices 139
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