The Role of NAFTA and Returns to Scale in Export Duration

38 Pages Posted: 2 Jun 2011 Last revised: 28 Feb 2012

See all articles by Tibor Besedes

Tibor Besedes

Georgia Institute of Technology

Date Written: January 23, 2012

Abstract

While exports within NAFTA face a lower hazard of ceasing, its onset has increased the hazard for Mexican and U.S. intra NAFTA exports. Intra NAFTA exports still enjoy a lower hazard relative to exports to non--members. While NAFTA did affect the hazard for Canada's exports in the short run, its effect on Mexican and U.S. exports is persistent. Exports of IRS manufacturing products face the highest hazard in the case of Canada and Mexico, while IRS natural resource products have the highest hazard for Mexico. The effect of NAFTA on the returns to scale product types is exporter specific.

Keywords: hazard, export survival, returns to scale, NAFTA

JEL Classification: F10, F14

Suggested Citation

Besedes, Tibor, The Role of NAFTA and Returns to Scale in Export Duration (January 23, 2012). Available at SSRN: https://ssrn.com/abstract=1856313 or http://dx.doi.org/10.2139/ssrn.1856313

Tibor Besedes (Contact Author)

Georgia Institute of Technology ( email )

221 Bobby Dodd Way
Atlanta, GA 30332-0615
United States

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