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Wage And Employment Effects Of The North American Free Trade Agreement On The U.S. Manufacturing Sector, Abm Ekramul Nasir

Masters Theses

According to the conventional theories of international trade, trade liberalization equalizes factor prices across countries involved in trade. The North American Free Trade Agreement (NAFTA) is a newer form of regional economic integration between a developing country, Mexico, and two developed countries, the United States and Canada. Complying with proposition of conventional theories, it is rational to expect that NAFTA will lead to equalization of factor prices among theses three countries. On the other hand, the existence of a wide gap in wages between the United States and Mexico may lead to lower wages in the U.S.A. This study, however, …