NAFTA's and CUSFTA's Impact on International Trade

  title={NAFTA's and CUSFTA's Impact on International Trade},
  author={John Romalis},
  journal={The Review of Economics and Statistics},
  • John Romalis
  • Published 2007
  • Economics
  • The Review of Economics and Statistics
This paper identifies NAFTA's effects on trade volumes and prices using detailed trade and tariff data. It identifies demand elasticities from the additional wedges driven between consumption patterns in NAFTA versus non-NAFTA countries caused by tariff reductions. Supply elasticities are identified using tariffs as instruments for observed quantities. Analysis of worldwide trade data for 5,000 commodities shows that NAFTA had a substantial impact on international trade volumes, but a modest… Expand
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