Embrace or Not? An Empirical Study of the Impact of Globalization on the Country’s Sustainability in the Case of NAFTA

This paper investigates the international trade role in economic development and sustainability. Specifically, a trade agreement is one of the most popular ways for a country to participate in trade, therefore we aim to estimate the relationship between a free trade agreement (FTA) and economic development on a country level, using the North American Free Trade Agreement as an example. Sustainability on an industrial level is also discussed in parallel. To achieve this, a counterfactual analysis is used to generate the welfare with and without the trade agreement to draw inference on the sustainability analysis. We find that the FTA does facilitate a country’s sustainability. However, it is less clear on an industrial level. This finding provides important evidence relating to a country’s sustainable development and has broadened the study scope regarding the impact of participating in an FTA with regard to economic sustainability.

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The impact of the North American free trade agreement on multinational firms: Evidence from the stock market

Journal of International Accounting Auditing and Taxation ◽

10.1016/1061-9518(95)90015-2 ◽

1995 ◽

Vol 4 (2) ◽

pp. 163-173 ◽

Cited By ~ 3

Author(s):

Waqar I. Ghani ◽

John L. Haverty

Keyword(s):

Stock Market ◽

Free Trade ◽

North American ◽

Free Trade Agreement ◽

Multinational Firms ◽

Trade Agreement ◽

The North ◽

The Impact

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North American Free Trade Agreement Truck Highway Corridors: U.S.-Mexican Truck Rivers of Trade

Transportation Research Record Journal of the Transportation Research Board ◽

10.3141/1613-10 ◽

1998 ◽

Vol 1613 (1) ◽

pp. 71-78 ◽

Cited By ~ 6

Author(s):

John P. McCray

Keyword(s):

United States ◽

Free Trade ◽

North American ◽

Free Trade Agreement ◽

Trade Agreement ◽

The United States ◽

Advocacy Groups ◽

The North ◽

Federal Highway ◽

The Impact

The dramatic growth in trade between the United States and Mexico from $12.39 billion to $56.8 billion of U.S. exports and $17.56 billion to $73 billion of U.S. imports between 1977 and 1996 and the implementation of the North American Free Trade Agreement (NAFTA) have focused attention on the impact that the truck-transported portion of this trade has on U.S. highways. State and federal highway administrators are concerned with the planning implications this additional unexpected traffic may have on the transportation infrastructure. Public advocacy groups want additional highway funds to promote one NAFTA highway corridor over others in an effort to stimulate additional economic development. Most of these groups advocate a north-south route through the United States between Canada and Mexico that follows the alignment of an existing federal highway number. Research conducted by the U.S. government under the 1991 Intermodal Surface Transportation Efficiency Act has failed to define NAFTA highway corridors adequately, leaving policy makers with little concrete information with which to combat the rhetoric of the trade highway corridor advocacy groups. A report is provided on research critical to the needs of both highway administrators and corridor advocacy groups, namely, the location of U.S.-Mexican trade highway corridors and the trade truck density along these corridors.

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