Date of Submission
Campus Only Senior Thesis
Bachelor of Arts
2022 Joaquin Riojas Zambrano
Almost 30 years after its implementation in 1994, the effects of NAFA are still unclear and misunderstood. Past research has broadened our understanding of the channels by which trade can affect U.S. wages and labor markets—particularly in the context of China. This paper contributes to a rich, but heterogenous, literature on the effects of U.S.-Mexico trade by adapting the methodologies used in the Chinese context by Acemoglu et al. (2014) to illuminate the effects of imports from, and exports to, Mexico on American Manufacturing employment. While previous works consider the effects on U.S. wages or Mexican employment, I explicitly look at U.S. employment across manufacturing industries using a panel dataset from 2000 to 2018. Across several specifications I find the expected positive effects on exports to employment, and I establish a positive relationship between imports from Mexico and U.S. employment This latter result supports the “downstream” effects mechanism by which greater trade exposure can have a positive impact on employment.
Riojas, Joaquin, "A Retrospective On NAFTA: The Effects of Trade with Mexico on U.S. Manufacturing Employment" (2022). CMC Senior Theses. 2936.
This thesis is restricted to the Claremont Colleges current faculty, students, and staff.