Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/77411
Authors: 
Ito, Tadashi
Year of Publication: 
2007
Series/Report no.: 
HEI Working Paper 26/2007
Abstract: 
This paper studies whether NAFTA contributed to the productivity convergence between Mexico and the US. Using data from the manufacturing sector for 1986 to 2000 and introducing a number of refinements in the computation of the total factor productivity and estimation methods, it shows that the productivity gap increased and converged to a higher gap level. Moreover, it finds no clear evidence for NAFTA's contribution to the TFP convergence. These findings are in a sharp contrast with that of the previous literature. The paper also finds that under NAFTA the industries which have smaller initial productivity gap experienced less increasing productivity gap than the industries which have larger initial productivity gap.
Subjects: 
NAFTA
Productivity
JEL: 
F15
F43
Document Type: 
Working Paper

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