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The Review of Economic Studies· 2014Q1

Estimates of the Trade and Welfare Effects of NAFTA

Lorenzo Caliendo, Fernando Parro

Short summary

NAFTA tariff reductions increased Mexico's welfare by 1.31% and U.S. welfare by 0.08%, while Canada's declined 0.06%, according to a Ricardian model incorporating sectoral linkages and intermediate goods.

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Field: General Economics, Econometrics and Finance

General Economics, Econometrics and FinanceEconomics, Econometrics and Finance