Trade (Dis)Integration: The Sudden Death of NAFTA

16 Pages Posted: 24 May 2018 Last revised: 21 Sep 2018

See all articles by Dimitrios Bakas

Dimitrios Bakas

Nottingham Trent University

Karen Jackson

University of Westminster

Georgios Magkonis

University of Bradford

Date Written: May 13, 2018

Abstract

This paper uses a PVAR model to study the macroeconomic effects of trade disintegration among NAFTA members. The results reveal substantial asymmetric responses, showing that the US is the most affected economy from a sudden negative trade integration shock. Moreover, Canada and the US are found to be relatively more interconnected with each other compared to the Mexican economy. Our findings question the US decision to push for the renegotiation of the NAFTA agreement.

Keywords: NAFTA, Trade Integration, PVAR Model

JEL Classification: F14, F15, C33

Suggested Citation

Bakas, Dimitrios and Jackson, Karen and Magkonis, Georgios, Trade (Dis)Integration: The Sudden Death of NAFTA (May 13, 2018). Available at SSRN: https://ssrn.com/abstract=3178694 or http://dx.doi.org/10.2139/ssrn.3178694

Dimitrios Bakas

Nottingham Trent University ( email )

Burton Street
NG1 4BU Nottingham
United Kingdom

Karen Jackson (Contact Author)

University of Westminster ( email )

35 Marylebone Road
London NW1 5LS
United Kingdom

HOME PAGE: http://karen-jackson.com

Georgios Magkonis

University of Bradford

Bradford
Bradford, BD9 4JL
United States

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