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Since the enactment of NAFTA, U.S.–Mexico trade and manufacturing processes have become increasingly integrated through … cross-border production linkages. A new Banco de México economic model finds that U.S. imports from Mexico can be explained … by taking into account the level of U.S. exports—suggesting that trade with Mexico may have contributed to enhanced U …
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Starting with Krugman (1980), much literature has analyzed how trade liberalization affects the economy based on the notion that trade is motivated by consumer’s love of variety. In this paper, I augment these preferences by the determinants of demand for heterogeneous products. The model...
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This paper examines whether increasing trade intensity among East Asian countries has led to a synchronization of business cycles. It extends the work of Shin and Wang (2004) in two ways: by (i) improving the specification of their business cycle correlation equation, and (ii) extending the...
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