Evidence_EconomiesScale

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: ains from trade & adjustment costs: Case Study: North American Free Trade Agreement (NAFTA) II.  Evidence for other model predic/ons: 1.  The Gravity Equa/on: large countries trade more 2.  Intra ­Industry Trade Empirical Evidence: NAFTA (1994) Gains and costs for CANADA: •  The poten/al for Canadian firms to expand output was a key factor in Canada s free ­trade agreement with the U.S. •  Data from 1988–1996 was used to es/mate effects of the Canada ­ U.S. Free Trade Agreement. •  Long run: large posi7ve effects on produc7vity –  15% over eight years in industries most aff...
View Full Document

This document was uploaded on 01/18/2014.

Ask a homework question - tutors are online