North American Trade in the Post-Debt-Crisis Era

Barry W. Poulson and Mohan Penubarti

Chapter 6 in North American Free Trade Agreement, 1993, pp 84-97 from Palgrave Macmillan

Abstract: Abstract Ordinarily we think of financial crises as having a negative impact on trade flows as well as financial flows. Charles Kindleberger, for example, provides the historical evidence of several centuries to show that periods of crisis in international financial markets have been accompanied by the collapse of international trade as well (Kindle-berger, 1978). The Great Depression of the 1930s is the classic case of a downward spiral in world trade, tied to the collapse of international financial markets. Based upon historical precedent we would predict that the financial crisis of 1982 would also have had a disruptive impact on world trade. Given the fact that the 1982 crisis was triggered by the Mexican government’s inability to service its foreign debt, and that that debt was held mainly in the United States, we would expect the crisis to have been particularly disruptive to Mexican-U.S. trade.

Keywords: Trade Liberalization; Debt Crisis; North American Free Trade Agreement; External Debt; Significant Positive Trend (search for similar items in EconPapers)
Date: 1993
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-1-349-22976-5_6

Ordering information: This item can be ordered from
http://www.palgrave.com/9781349229765

DOI: 10.1007/978-1-349-22976-5_6

Access Statistics for this chapter

More chapters in Palgrave Macmillan Books from Palgrave Macmillan
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().