Regional Integration and Technology Diffusion: The Case of NAFTA

20 Pages Posted: 29 Oct 2002

See all articles by Maurice Schiff

Maurice Schiff

Fellow, Institute for the Study of Labor (IZA)

Yanling Wang

Carleton University

Date Written: August 2002

Abstract

This paper examines the impact of NAFTA on trade-related foreign R&D and total factor productivity (TFP) in Mexico. The measures of foreign R&D are constructed based on industry-specific R&D in the OECD, OECD-Mexico trade patterns, and input-output relations in Mexico. We find that i) trade with Mexico's NAFTA partners has a large and significant impact on Mexico's TFP while trade with the rest of the OECD does not; and ii) NAFTA has led to a permanent increase in TFP in Mexico's manufacturing sector of between 5.5% and 7.5% and to some convergence to the economies of the US and Canada.

Keywords: Regional integration, Technology diffusion, NAFTA

JEL Classification: F02, F15, F43, O39

Suggested Citation

Schiff, Maurice W. and Wang, Yanling, Regional Integration and Technology Diffusion: The Case of NAFTA (August 2002). Available at SSRN: https://ssrn.com/abstract=323040

Maurice W. Schiff (Contact Author)

Fellow, Institute for the Study of Labor (IZA) ( email )

Bonn
Germany

Yanling Wang

Carleton University ( email )

1125 Colonel By Drive
Ottawa, Ontario K1S 5B6
Canada

HOME PAGE: http://https://carleton.ca/npsia/people/yanling-wang/

Register to save articles to
your library

Register

Paper statistics

Downloads
288
Abstract Views
2,135
rank
105,363
PlumX Metrics