Title: NAFTA's and CUSFTA's impact on international trade
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.
Subjects: Canada, Canada. 1988 Jan. 2., Canada. 1992 Oct. 7., Commercial policy, Econometric models, International trade, Mathematical models, North American Free Trade Agreement, Canada. 1988 January 2.
Places: North America