This study examines the effect of NAFTA, an instance of North-South trade liberalization, on returns to skill in Mexico …, NAFTA ought to have raised the relative earnings of low-skill workers, that is, lowered returns to skill in Mexico. Analysis …. Mexico is abundant in low-skill workers relative to the US and Canada, and so, by the Hecksher-Ohlin-Samuelson trade model …

accrues long after entry, when plants become large exporters. -- NAFTA ; trade liberalization ; productivity ; heterogeneity …

In this paper we study the effect of NAFTA on the responsiveness of Mexican economy to real exchange rate shocks. We … argue that, by opening the U.S. and Canadian markets to Mexican goods, NAFTA made it easier for domestic producers to take … observed in the mid 1980s, the second the Tequila Crisis of 1994-5. The evidence indicates that after passage of NAFTA …

implementation of the North American Trade Agreement (NAFTA). In all industries, an overwhelming share of aggregate productivity … growth is accounted for by a small number of plants which were larger and more productive before the implementation of NAFTA … and expanded and became more productive following the implementation of NAFTA. Plants that exported before NAFTA and …

competition are more likely to migrate to other municipalities within Mexico, while a negative effect is found on the decision to …

, empirical evidence often shows the opposite. Using the case of Mexico-U.S. migration, we show that this inconsistency between …