Multi-Regional Input-Output Model to Analyze the Economic Impacts of the North American Free Trade Agreement

Pablo Ruiz-Nápoles and Eduardo Moreno Reyes
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Pablo Ruiz-Nápoles: Universidad Nacional Autonóma de México, México
Eduardo Moreno Reyes: Università degli studi di Macerata, Italy

Economia Internazionale / International Economics, 2026, vol. 79, issue 3, 343-378

Abstract: The North American Free Trade Agreement (NAFTA) was renegotiated starting in 2017 under pressure from the US administration, which argued that the trade agreement had been unfair to the US economy and favorable to Mexico. The purpose of this paper is to evaluate which country—Mexico, Canada, or the United States—benefited the most from NAFTA, using economic indicators estimated through the Input-Output model. Specifically, the Multi-Regional Input-Output (MRIO) analysis technique and data from the World Input-Output Database (WIOD) were employed. Our main finding is that US benefited relatively more from NAFTA’s trade and rules than Mexico or Canada did.

Keywords: Free Trade Agreement; Input-Output; Exports; Employment; Value-Added (search for similar items in EconPapers)
JEL-codes: C67 F13 F53 (search for similar items in EconPapers)
Date: 2026
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Persistent link: https://EconPapers.repec.org/RePEc:ris:ecoint:023524

DOI: 10.65644/EIIE.079.03.0343

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