A General Equilibrium Analysis of the Gains from NAFTA for the Mexican Economy
This chapter attempts to evaluate the effects that the free trade agreement (FTA) between Mexico, Canada, and the United States will have on the Mexican economy in the presence of scale economies and imperfect competition in the Mexican industry. The method of modeling economies of scale follows the lines of the Harris (1984) model for Canada and focuses in detail on the effects within the Mexican economy.
KeywordsReal Exchange Rate Real Wage Free Trade Agreement Imperfect Competition Official Price
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