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The impact of NAFTA on California exports

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  • Esmael Adibi
  • James Doti

Abstract

This study conducts an examination of the North American Free Trade Agreement's (NAFTA) impact on California's export levels to Mexico and Canada while holding constant other variables that explain a state's exports to other nations, such as exchange rates and relative income growth. Transformed weighted least squares equations over a sample period between 1988 and 1997 are used to show that California's exports to Canada were not significantly affected by NAFTA, while exports to Mexico increased, on average, a statistically significant 16.11 percent between 1994 and 1997. The model also suggests that NAFTA's impact on California's exports to Mexico has increased over time from a 10.0 percent increase in 1994 to a 21.8 percent increase by 1997. Copyright International Atlantic Economic Society 2001

Suggested Citation

  • Esmael Adibi & James Doti, 2001. "The impact of NAFTA on California exports," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 7(1), pages 159-166, February.
    • Handle: RePEc:kap:iaecre:v:7:y:2001:i:1:p:159-166:10.1007/bf02296600
    DOI: 10.1007/BF02296600
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    References listed on IDEAS

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    1. Patrick J. Kehoe & Timothy J. Kehoe, 1994. "Capturing NAFTA's impact with applied general equilibrium models," Quarterly Review, Federal Reserve Bank of Minneapolis, vol. 18(Spr), pages 17-34.
    2. Guy V.G. Stevens, 1998. "U.S. Direct Investment To Mexico: Politics, Economics, And Nafta," Contemporary Economic Policy, Western Economic Association International, vol. 16(2), pages 197-210, April.
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