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An Empirical Estimation of the Level of Intra-Industry Trade between Mexico and the United States

In: North American Free Trade Agreement

Author

Listed:
  • Jorge G. Gonzalez
  • Alejandro Velez

Abstract

This chapter presents an evaluation of the level of intra-industry trade between Mexico and the United States. The calculated indexes of intraindustry trade indicate a rapid increase in this type of trade during the 1982–90 period. Additionally, the current level of intra-industry trade between the two nations is quite high when compared with similar indexes of other nations. These results help to explain the apparent ease with which the United States adjusted to increased Mexican imports during the 1980s. Furthermore, the high level of intra-industry trade indicates that after NAFTA has been implemented there should be no major dislocation of productive activities in either of these countries as a result of the expansion in trade.

Suggested Citation

  • Jorge G. Gonzalez & Alejandro Velez, 1993. "An Empirical Estimation of the Level of Intra-Industry Trade between Mexico and the United States," Palgrave Macmillan Books, in: Khosrow Fatemi (ed.), North American Free Trade Agreement, chapter 12, pages 161-172, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-1-349-22976-5_12
    DOI: 10.1007/978-1-349-22976-5_12
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    Cited by:

    1. E.M. Ekanayake & Mihalis Halkides & Robin Rance & Iliana Filyanova, 2007. "Intra-Industry Trade Between The United States And Latin American Countries," The International Journal of Business and Finance Research, The Institute for Business and Finance Research, vol. 1(2), pages 109-124.
    2. Yoshinori Kurokawa, 2011. "Variety-skill complementarity: a simple resolution of the trade-wage inequality anomaly," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 46(2), pages 297-325, February.

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