TY  - BOOK
AU  - Romalis,John
ED  - National Bureau of Economic Research.
TI  - NAFTA's and CUSFTA's Impact on International Trade
T2  - NBER working paper series
PY  - 2005///
CY  - Cambridge, Mass.
PB  - National Bureau of Economic Research
N1  - January 2005; Hardcopy version available to institutional subscribers
N2  - This paper identifies the effects of preferential trade agreements on trade volumes and prices using detailed trade and tariff data. It identifies demand elasticities by developing a difference in differences based method that exploits the fact that the additional wedge driven between consumption patterns in a liberalizing versus a non-liberalizing country is directly related to the tariff reduction. Supply elasticities are identified by using tariffs as instruments for observed quantities. Analysis of world-wide trade data for 5,000 commodities shows that NAFTA and CUSFTA have had a substantial impact on international trade volumes, but a modest effect on prices and welfare. NAFTA and CUSFTA increased North American output and prices in many highly-protected sectors by driving out imports from non-member countries
UR  - https://www.nber.org/papers/w11059
UR  - http://dx.doi.org/10.3386/w11059
ER  -