Does trade imply convergence? Analyzing the effect of NAFTA on the local convergence in Mexico

Alberto Díaz Dapena, Esteban Fernández Vázquez (), Rafael Garduño and Fernando Rubiera Morollón
Authors registered in the RePEc Author Service: Fernando Rubiera Morollón and Rafael Garduño Rivera

ERSA conference papers from European Regional Science Association

Abstract: Regional Economics and Economic Growth focus on the question of trade leads to a greater concentration of economic activity. Yet little empirical work has assessed the regional convergence impacts of trade. Therefore this paper studies the regional convergence from trade in Mexico after NAFTA. Unlike previous papers, working with municipal-level data allows to observe more clearly the convergence patterns across space and to identify the effect of NAFTA, respectively. Result shows that after NAFTA, convergence in regions near the U.S. border grew faster than those further away. However, there is a significant reduction of the beta coefficient after NAFTA indicating a slowdown in the convergence rate. Additional, we find that those municipalities in the south have not been integrated in the world markets, and have, instead, lagged behind their counterparts after NAFTA.

Keywords: Convergence; local level; clusters; international trade; NAFTA and Mexico (search for similar items in EconPapers)
JEL-codes: R11 R15 (search for similar items in EconPapers)
Date: 2015-10
New Economics Papers: this item is included in nep-int
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Related works:
Working Paper: Does Trade Imply Convergence? Analyzing The Effect of NAFTA on The Local Convergence in Mexico (2015)
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Persistent link: https://EconPapers.repec.org/RePEc:wiw:wiwrsa:ersa15p282

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