This paper examines the impact of NAFTA on trade-related foreign R&D and total factor productivity (TFP) in Mexico. The … measures of foreign R&D are constructed based on industry-specific R&D in the OECD, OECD-Mexico trade patterns, and input …-output relations in Mexico. We find that i) trade with Mexico's NAFTA partners has a large and significant impact on Mexico's TFP while …

Agreement (NAFTA), a prime example of this new regionalism, on foreign direct investment in Mexico. Using data from the Mexican …