This paper studies whether NAFTA contributed to the productivity convergence between Mexico and the US. Using data from … productivity and estimation methods, it shows that the productivity gap increased and converged to a higher gap level. Moreover, it … the previous literature. The paper also finds that under NAFTA the industries which have smaller initial productivity gap …

transitory components of TFP shocks and learn about those components using the Kalman filter. Calibrated to Mexico, the model …, our estimation for Mexico and Canada suggests more severe informational frictions in emerging markets than in developed …