The Role of NAFTA and Returns to Scale in Export Duration
38 Pages Posted: 2 Jun 2011 Last revised: 28 Feb 2012
Date Written: January 23, 2012
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: Suggested Citation