Mexico-U. S. Free Trade Agreement

Overview

The seven contributions in this book examine the potential impact of a North American Free Trade Agreement (NAFTA) with Mexico on the U.S. economy. They cover such key aspects as the general sources of comparative advantage between Mexico and the U.S., regional and local effects on production and employment, and the effect on production in particular industries.

The authors start from the premise that the trade agreement will have a small impact on the overall U.S. gross ...

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Overview

The seven contributions in this book examine the potential impact of a North American Free Trade Agreement (NAFTA) with Mexico on the U.S. economy. They cover such key aspects as the general sources of comparative advantage between Mexico and the U.S., regional and local effects on production and employment, and the effect on production in particular industries.

The authors start from the premise that the trade agreement will have a small impact on the overall U.S. gross national product because the U.S. economy is large compared to that of Mexico and because there is already much unrestricted trade between the two countries. Several chapters consider how some sources of comparative advantage that cut across industries differential environmental regulations and wage differentials - may affect the outcome. These are followed by chapters that assess the locational effects on U.S. production, either from the viewpoint of which metropolitan areas will gain employment or of the scale effects-transportation cost-tradeoff. Concluding chapters address the effect of the NAFTA on several individual U.S. sectors such as agriculture, automobiles, and financial services.

Peter M. Garber is Professor of Economics at Brown University.

Contents: Introduction, Peter M. Garber. Environmental Impacts of a North American Free Trade Agreement, Gene M. Grossman, Alan B. Krueger. Wage Effects of a U.S.-Mexico Free Trade Agreement, Edward E. Leamer. Some Favorable Impacts of a U.S.-Mexico Free Trade Agreement, J. Vernon Henderson. Mexico- U.S. Free Trade and the Location of Production, Paul Krugman, Gordon Hanson. Trade with Mexico and Water Use in California Agriculture, Robert C. Feenstra, Andrew K. Rose. The Automobile Industry and the Mexico-U.S. Free Trade Agreement, Steven Barry, Vittorio Grilli, Florencio Lopez-de-Silanes. Opening the Financial Services Market in Mexico, Peter M. Garber, Steven R. Weisbrod.

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Product Details

  • ISBN-13: 9780262519076
  • Publisher: MIT Press
  • Publication date: 1/18/1994
  • Pages: 323
  • Product dimensions: 6.00 (w) x 8.90 (h) x 0.80 (d)

Meet the Author

Peter M. Garber is Global Strategist at Global Markets Research of Deutsche Bank.

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Table of Contents

1 Introduction 1
I Sources of Comparative Advantage
2 Environmental Impacts of a North American Free Trade Agreement 13
3 Wage Effects of a U.S.-Mexican Free Trade Agreement 57
II Regional and Local Production and Employment Effects
4 Some Favorable Impacts of a U.S.-Mexico Free Trade Agreement on U.S. Urban Employment 129
5 Mexico-U.S. Free Trade and the Location of Production 163
III Effects on Specific Industries
6 Trade with Mexico and Water Use in California Agriculture 189
7 The Automobile Industry and the Mexico-U.S. Free Trade Agreement 219
8 Opening the Financial Services Market in Mexico 279
Index 311
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