Abstract

Mexican integration into the North American free trade zone is modeled as removing the tariff on Mexican imports of manufacturing goods. Using a theoretical model, it is shown that this increases welfare through production, consumption and employment gains. The results are derived by nesting the theory of customs unions, and the Harris-Todaro type intersectoral labor migration model into a unified framework.

Full Text
Published version (Free)

Talk to us

Join us for a 30 min session where you can share your feedback and ask us any queries you have

Schedule a call