NAFTA and Manufacturing Productivity in Mexico

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dc.description.abstract Using a panel of Mexican manufacturing plants over the period 1993-1999, I estimate total factor productivity (TFP) at the plant level and study its evolution in the face of trade and investment liberalization under the North American Free Trade Agreement. I implement the Olley-Pakes (1996) algorithm on the data to correct for simultaneity and sample selection problems a¤ecting OLS estimates. I then relate the evolution of TFP over the period to tariff levels in Mexico and the United States, import penetration, exporting activities, imported inputs use and foreign capital participation. I ...nd that increased import competition and access to the U.S. market have had a positive impact on TFP. Foreign capital also has had a positive impact on TFP, but intra-industry spillovers are negative. Last, there is no clear evidence regarding the impact from the use of imported inputs or from exporting operations. en
dc.title NAFTA and Manufacturing Productivity in Mexico en
dc.contributor.author López-Córdova, Ernest
dc.date.accessioned 2014-11-10T19:37:37Z
dc.date.available 2014-11-10T19:37:37Z
dc.date.issued 2003-10
dc.identifier.issn 1529-7470
dc.identifier.uri http://hdl.handle.net/123456789/48715
lacea.language.supported en
dc.contributor.other Comments by Gerardo Esquivel Hernández and Alexander Monge-Naranjo
dc.language.iso en
dc.publisher Brookings Institution Press
dc.subject NAFTA
dc.subject United States
dc.subject Mexico
dc.subject Productivity
dc.subject Manufacturing
dc.subject Foreign Direct Investment
dc.subject Trade liberalization
dc.type Article

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