Year: 1998
Type: article
Abstract: Welfare effects o f economic integration are o ften studied with aggregate data, and as such provide limited insights about the effects o f trade pacts to individual economic agents in the free trade area.In this study a three-digit disaggregated commodity/industry data grouped under the Standard International Trade Classification is used to empirically assess the economic benefits o f the North American Free Trade Agreement (NAFTA).Im port demand elasticities from a dynamic demand model were used to estimate both trade creation and trade diversion effects o f removing a ll t a r i f f barriers from among N A F T A countries -US, Canada and Mexico.Results show that US imports o f crude oil and petrole um products from Canada and most US imports from Mexico are more sensi tive to domestic prices than to bilateral import prices.Further, results indicate
Source: Journal of Economic Integration
Authors: David Karemera, Kalu Ojah
Institutions: South Carolina State University, Saint Louis University
Language: English
Topic: Global trade and economics
Domain: Social Sciences
Open Access status: bronze
OpenAlex ID: W2081004247