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Economic Polarization Through Trade: Trade Liberalization and Regional Growth in Mexico

Andrés Rodríguez-Pose () and Javier Sanchez-Reaza ()

No DP2003-60, WIDER Working Paper Series from World Institute for Development Economic Research (UNU-WIDER)

Abstract: The paper analyses the impact trade liberalization and economic integration have had on regional growth and regional disparities in Mexico over the last two decades. It is highlighted that the passage from an import substitution system to membership of the General Agreement on Tariffs and Trade (GATT) first, and to economic integration in the North American Free Trade Agreement (NAFTA) later, has been associated with greater concentration of economic activity and territorial polarization. The analysis also shows that these changes herald a period of transition between two growth models.

Keywords: Economic integration; Labor; Regional economics; Trade regulation (search for similar items in EconPapers)
Date: 2003
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