NAFTA's and CUSFTA's impact on international trade
By: John Romalis.
Contributors: National Bureau of Economic Research.
Series: NBER working paper series -- no. 11059.; Working paper series (National Bureau of Economic Research) -- working paper no. 11059.
Publisher: National Bureau of Economic Research
Published: 2005
Place of publication: Cambridge, Mass
Language: eng
Number of pages: 35
Subjects: Canada; Canada; International trade -- Econometric models; North America -- Commercial policy
Description: "This paper identifies the effects of preferential trade agreements on trade volumes and prices using detailed trade and tariff data. It identifies demand elasticities by developing a difference in differences based method that exploits the fact that the additional wedge driven between consumption patterns in a liberalizing versus a non-liberalizing country is directly related to the tariff reduction. Supply elasticities are identified by using tariffs as instruments for observed quantities. Analysis of world-wide trade data for 5,000 commodities shows that NAFTA and CUSFTA have had a substantial impact on international trade volumes, but a modest effect on prices and welfare. NAFTA and CUSFTA increased North American output and prices in many highly-protected sectors by driving out imports from non-member countries"--National Bureau of Economic Research web site.
Notes: "January 2005."

Includes bibliographical references (p. 33-35).

Also available in PDF from the NBER world wide web site (www.nber.org).