The impact of NAFTA on California exports

Esmael Adibi and James Doti

International Advances in Economic Research, 2001, vol. 7, issue 1, 159-166

Abstract: This study conducts an examination of the North American Free Trade Agreement's (NAFTA) impact on California's export levels to Mexico and Canada while holding constant other variables that explain a state's exports to other nations, such as exchange rates and relative income growth. Transformed weighted least squares equations over a sample period between 1988 and 1997 are used to show that California's exports to Canada were not significantly affected by NAFTA, while exports to Mexico increased, on average, a statistically significant 16.11 percent between 1994 and 1997. The model also suggests that NAFTA's impact on California's exports to Mexico has increased over time from a 10.0 percent increase in 1994 to a 21.8 percent increase by 1997. Copyright International Atlantic Economic Society 2001

Date: 2001
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DOI: 10.1007/BF02296600

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