Who benefited from trade liberalization in Mexico?
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Who benefited from trade liberalization in Mexico? measuring the effects on household welfare by Alessandro Nicita

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Published by World Bank in Washington, D.C .
Written in English

Subjects:

Places:

  • Mexico,
  • Mexico.

Subjects:

  • Free trade -- Mexico.,
  • Mexico -- Economic conditions -- Regional disparities.

Book details:

Edition Notes

StatementAlessandro Nicita.
SeriesPolicy research working paper ;, 3265, Policy research working papers (Online) ;, 3265.
ContributionsWorld Bank.
Classifications
LC ClassificationsHG3881.5.W57
The Physical Object
FormatElectronic resource
ID Numbers
Open LibraryOL3381291M
LC Control Number2004551173

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Get this from a library! Who benefited from trade liberalization in Mexico?: measuring the effects on household welfare. [Alessandro Nicita; World Bank.] -- This study performs an ex-post analysis of the effects of the trade liberalization in Mexico between and , taking into account regional differences in the Mexican economy. Get this from a library! Who benefited from trade liberalization in Mexico?: measuring the effects on household welfare. [Alessandro Nicita; World Bank. Development Research Group. Trade.]. case of Mexico. 2. Mexico’s Trade Liberalization and Households Welfare This chapter presents a brief over overview of Mexican trade liberalization, tariff structure, and the evolution of prices and poverty in the s. Trade Liberalization Mexico’s trade liberalization can be divided into four phases. Figure shows the. Who Benefited from Trade Liberalization in Mexico? Measuring the Effects on Household Welfare Alessandro Nicita WBWP # April Basic Questions: • What has been the effect of Mexican trade liberalization on households welfare? (no simulation, but estimation).

Downloadable! This study performs an ex-post analysis of the effects of the trade liberalization in Mexico between and , taking into account regional differences in the Mexican economy. The effects of trade liberalization are first translated into changes in regional prices and wages. Those estimates are plugged into a farm-household model to estimate the effect on households'welfare.   Before the trade barriers went down and FDI flowed into the country (i.e., pre ) economic activity was concentrated in and around Mexico City which is the largest market in the country. With trade liberalization the large market of the US and the large share of US in Mexico’s trade meant that closeness to US became more important. Downloadable! Trade liberalisation in Mexico started in a significant way in /86, and was consolidated by the NAFTA agreement Mexico was expected to benefit in terms of increased export growth, employment, real wages, and above all, a faster rate of economic growth. In practice, there has been a divorce between rhetoric and reality. As demonstrated by recent studies, the associated increase in world welfare from full trade liberalization ranges from to percent—results that differ by a factor of 15! The objective of this study is to examine the efficiency of trade modeling in capturing the benefits from trade liberalization.

In the mids, Mexico undertook major trade reform, privatization and deregulation. This coincided with a rapid expansion in wages and employment that led to a rise in wage dispersion.   Trade liberalization is the reverse process of protectionism. After previous protectionist decisions, trade liberalization occurs when governments decide to move back toward free trade. The standard trade theory implies that capital and skilled labor in industrialized countries (the relatively scarce factors) will benefit disproportionately from trade liberalization, and that unskilled workers (more than 70% of the labor force in the US) would fare relatively worse. Trade liberalization is the removal of tariff and non-tariff barriers in trade, basically international. This has significant macroeconomic and distributional effects. The Heckscher-Ohlin Trade Theorem is the basic theoretical foundation of trade liberalization.