Effects of North American Free Trade Agreement on the US Labor Market: An ARDL Bounds Testing Approach

Mustafa Ozturk and Osman Nuri Aras

MPRA Paper from University Library of Munich, Germany

Abstract: One of the political debates on negative effects of the economic integration between the USA and the other members of the North American Free Trade Agreement (NAFTA) Canada and Mexico is the rise of unemployment. This study aims to identify whether this thesis is true or not. For that the relations between the statistical variables employment, export, import, wages and gross domestic product were estimated through Autoregressive Distributive Lag model (ARDL). Empirical findings show that the import from the NAFTA countries has negative effect on the employment in the long run while its effect on the employment is positive in the short run. However, both the short run and the long run effects are so small that the negative effect is negligible comparing to the benefits of the economic integration.

Keywords: North America Free Trade Agreement (NAFTA); employment; trade; Autoregressive Distributive Lag model (ARDL). (search for similar items in EconPapers)
JEL-codes: F2 F4 F42 F55 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations:

Published in Journal of Management, Economics, and Industrial Organization 1.4(2020): pp. 100-113

Downloads: (external link)
https://mpra.ub.uni-muenchen.de/108360/1/MPRA_paper_108360.pdf original version (application/pdf)

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:pra:mprapa:108360

Access Statistics for this paper

More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Joachim Winter ().