The paper studies the regional distribution of the benefits from trade in Mexico after NAFTA. This analysis demonstrates that Mexicos trade liberalization, via NAFTA, has caused important changes in the location of economic activity. Although regional disparities have existed in Mexico since industri- alization began in the 1930s (L ́opez Malo 1960), NAFTA appears to have exacerbated these regional trends, concentrating growth in regions that already had larger GVA: specifically in the north and in urban centers.
Thus, we find that trade liberalization has not reduced territorial disparities, but rather led to a greater polarization. While Mexican municipalities close to the U.S. market have profited from integration by increasing their production and incomes, regions further away from the US have become more disconnected from Mexicos integration into world markets. Specifically, we find that while NAFTA increased GVA by 7% for municipalities at the border, it actually decreased GVA by 1% for a municipality in the southern end of the country.
However, north-south disparities are only one part of the story. Counter to popular belief, we find that NAFTA appeared to benefit those regions with poorer infrastructure, decreasing the gap between regions without drainage and those with drainage. Similarly, we see some evidence that NAFTA also lowered the gap between regions with higher rates of illiteracy and those with more literate populations. Thus, it appears as if NAFTA did have some redistributive effect. That said, regions with a larger population of highly-skilled workers benefited more from the trade agreement.
Splitting the data by sector gives us some insight into these patterns of economic growth. As one might expect, we see the largest regional effect of NAFTA occurring in the most traded sector: manufacturing. While the benefits of NAFTA in the wholesale/retail sector are also concentrated in larger urban centres, the border has a smaller draw overall. Further, the border appears to have, if anything a repulsive effect for the service sector after NAFTA.
We also see manufacturing being concentrated in those areas with better infrastructure, higher skilled labour and with maquiladoras after NAFTA. This distribution is different for the non-traded sectors. Specifically, it appears as if retail/wholesale are growing faster in regions without maquiladoras and services in particular are being driven out of regions with high-skilled labour after the trade agreement. Thus, it appears as if the redistributive effect of NAFTA is coming from a displacement of the non-traded sectors, while the traded sectors are if anything being concentrated in wealthier regions.
In summary, we find evidence supporting the claim that NAFTAs benefits primarily went to those regions already doing well economically. Of particular concern is that these disparities appear to be increasing even after NAFTA. Thus, if a government objective is to reduce economic disparity, one can argue that there is a need for redistributive policies to go alongside trade agreements. That said, regional development policy might try to make use of the fact that non-traded sectors appear to be willing to move to poorer regions, mitigating some of the economic disparity enhanced by trade.
กระดาษศึกษาประโยชน์จากการค้าในเม็กซิโกกระจายภูมิภาคหลังจาก NAFTA วิเคราะห์นี้แสดงให้เห็นว่า Mexicos เปิดเสรีการค้า ผ่าน NAFTA เกิดการเปลี่ยนแปลงที่สำคัญในตำแหน่งที่ตั้งของกิจกรรมทางเศรษฐกิจ แม้ว่าความแตกต่างภูมิภาคมีอยู่ในประเทศเม็กซิโกเนื่องจากเพล็ก-alization เริ่มขึ้นในช่วงทศวรรษ 1930 (L ́opez Malo 1960), NAFTA แสดง ได้เลวร้ายเหล่านี้แนวโน้มของภูมิภาค concentrating เติบโตในภูมิภาคที่มีขนาดใหญ่เบิร์นแล้ว: โดยเฉพาะ ในภาคเหนือ และ ในเมืองดังนั้น เราค้นหาค้าที่เปิดเสรีไม่ลดความแตกต่างดินแดน แต่แทนที่จะ นำไปสู่การโพลาไรซ์มากขึ้น ในขณะที่อำเภอเม็กซิกันใกล้กับตลาดสหรัฐฯ มี profited จากการรวม โดยการเพิ่มการผลิตและรายได้ของพวกเขา ภูมิภาคเพิ่มเติมจากสหรัฐอเมริกากลายเป็นขึ้นยกจาก Mexicos รวมในตลาดโลก โดยเฉพาะ เราพบว่า ในขณะที่ NAFTA เพิ่มเบิร์น 7% สำหรับอำเภอที่เส้นขอบ มันจริงลดเบิร์น 1% สำหรับเทศบาลในภาคใต้ของประเทศHowever, north-south disparities are only one part of the story. Counter to popular belief, we find that NAFTA appeared to benefit those regions with poorer infrastructure, decreasing the gap between regions without drainage and those with drainage. Similarly, we see some evidence that NAFTA also lowered the gap between regions with higher rates of illiteracy and those with more literate populations. Thus, it appears as if NAFTA did have some redistributive effect. That said, regions with a larger population of highly-skilled workers benefited more from the trade agreement.Splitting the data by sector gives us some insight into these patterns of economic growth. As one might expect, we see the largest regional effect of NAFTA occurring in the most traded sector: manufacturing. While the benefits of NAFTA in the wholesale/retail sector are also concentrated in larger urban centres, the border has a smaller draw overall. Further, the border appears to have, if anything a repulsive effect for the service sector after NAFTA.We also see manufacturing being concentrated in those areas with better infrastructure, higher skilled labour and with maquiladoras after NAFTA. This distribution is different for the non-traded sectors. Specifically, it appears as if retail/wholesale are growing faster in regions without maquiladoras and services in particular are being driven out of regions with high-skilled labour after the trade agreement. Thus, it appears as if the redistributive effect of NAFTA is coming from a displacement of the non-traded sectors, while the traded sectors are if anything being concentrated in wealthier regions.In summary, we find evidence supporting the claim that NAFTAs benefits primarily went to those regions already doing well economically. Of particular concern is that these disparities appear to be increasing even after NAFTA. Thus, if a government objective is to reduce economic disparity, one can argue that there is a need for redistributive policies to go alongside trade agreements. That said, regional development policy might try to make use of the fact that non-traded sectors appear to be willing to move to poorer regions, mitigating some of the economic disparity enhanced by trade.
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