Intra-industry trade between the United States and Mexico: 1993-1998
Keywords:free trade agreement, NAFTA, economic integration, western hemisphere
This paper examines changes in intra-industry trade (IIT) in manufactured goods between the US and Mexico over the first five years of the North American Free Trade Agreement. Most industries experienced large increases in IIT. An examination of various indexes of intra-industry specialization indicates that few industries in either country are candidates for significant adjustment problems. These findings should lessen opposition to greater regional economic integration in the Western Hemisphere.
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