When we split the data by sector, we observe that the traded sector, manufacturing, is affected
most strongly by the pull of the border after NAFTA. For the non-traded sector, services, if anything
we see a tendency to redistribute activity further away from the United States. Second, the non-traded
sectors are driving the increased growth in municipalities with lower human capital and infrastructure.
One possibility is that these sectors are moving out of regions where they compete against an expanding
manufacturing sector for labour.
When we split the data by sector, we observe that the traded sector, manufacturing, is affectedmost strongly by the pull of the border after NAFTA. For the non-traded sector, services, if anythingwe see a tendency to redistribute activity further away from the United States. Second, the non-tradedsectors are driving the increased growth in municipalities with lower human capital and infrastructure.One possibility is that these sectors are moving out of regions where they compete against an expandingmanufacturing sector for labour.
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