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

-run output equation with a coefficient equal to the share of capital (α). The long-run theory is tested using quarterly data on … Venezuela), plus Indonesia which is a former member, and Mexico and Norway, which are members of the OECD. Overall, the test … results support the long-run theory. The existence of long-run relations between real output, foreign output and real oil …

-regional variation in initial industry structures and use trade flows of other high-income countries as instruments for regional import … regions specialized in import-competing industries, both in manufacturing and beyond. Regions specialized in export …

income process. The empirical application of our framework using data on individual incomes from Mexico provides striking …

equilibrium theory with heterogeneous skills predicts a complementarity between trade and political regimes. Openness should …