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The commercial opening and its impact on income in North America: Benefit or regression?

Author

Listed:
  • Cuauhtémoc Calderón Villarreal

    (El Colegio de la Frontera Norte, México)

  • Sarahí Sánchez León

    (El Colegio de Chihuahua, México)

  • Leticia Hernández Bielma

    (El Colegio de la Frontera Norte, México)

Abstract

In this article, we analyze the relationship between bilateral trade and per capita income of the three countries that make up the economic area of NAFTA, a dualist treaty that integrates countries with different levels of economic development. Current literature defines this relationship ambiguously; which is why we consider that it is necessary to accurately measure the impact of bilateral trade on the evolution of per capita income in the three countries. For this purpose, we will apply the “instrumental variables” methodology developed by Frankel J. and D. Romer (1999) which utilizes measures related to the geographic component of the trade in order to construct instrumental variables that allow us to make this measurement. The results of the study show that for the study period 1994-2015 there is a negative relation between intra-NAFTA trade and per capita income of the countries in the area.

Suggested Citation

  • Cuauhtémoc Calderón Villarreal & Sarahí Sánchez León & Leticia Hernández Bielma, 2018. "The commercial opening and its impact on income in North America: Benefit or regression?," Contaduría y Administración, Accounting and Management, vol. 63(4), pages 23-24, Octubre-D.
    • Handle: RePEc:nax:conyad:v:63:y:2018:i:4:p:23-24
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    References listed on IDEAS

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