Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/20228
Authors: 
Calderon-Madrid, Angel
Voicu, Alexandru
Year of Publication: 
2004
Series/Report no.: 
IZA Discussion paper series 993
Abstract: 
This paper analyzes the performance of Mexican manufacturing firms following trade liberalization within a very specific institutional setting: The North American Free-Trade Agreement (NAFTA). We compare plants' productivity growth and patterns of job creation and destruction across their relative degree of integration into foreign product markets, their access to technology, and behavior with respect to research and development. Our findings show that access to imported inputs is the more significant vehicle for productivity enhancing effects of trade openness. Investment in technology is, by far, most strongly correlated with plant productivity. Like productivity, job turnover at firm level is strongly influenced by the degree of integration in international markets, import competition, and R&D behavior.
Subjects: 
total factor productivity
NAFTA
R&D
job creation and destruction
JEL: 
C14
G63
F13
D24
O54
Document Type: 
Working Paper

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