Kathy Baylis|Rafael Garduño?Rivera|Gianfranco Piras
The distributional effects of NAFTA in Mexico: Evidence from a panel of municipalities
University of Illinois Urbana-Champaign|Centro de Investigación y Docencia Económicas|West Virginia University
paper studies regional distribution benefits trade mexico north american free trade agreement nafta specifically ask whether nafta increased concentration economic activity mexico unlike previous work uses statelevel data identify effect nafta economic activity municipal level allowing us observe detailed growth patterns across space explicitly identify effect trade agreement contrast changes economic activity regions sectors less likely affected trade given spatial nature data make use spatial panel econometric methods find nafta caused wealthy regions nearest border grow faster others increasing regional disparity also find economic activity densely populated regions grew less quickly nafta particularly case traded sectors thus see evidence agglomeration lost draw nafta also find regions smaller portion high school graduates lower levels infrastructure saw growth increase trade agreement decreasing regional disparity notice redistributive effects strongest nontraded sectors