A dynamic dual model of the North American free trade agreement - Young, Leslie (Centro de Estudios Económicos. El Colegio de México, 1991)
Resumen: This paper develops a multi-period, general equilibrium model of the impact of the North American Free Trade Agreement (NAFTA) on Mexico. The model has 9 consumption goods sectors and 3 capital goods sectors. At current real interes rates of 10 , the long-run effect of NAFTA is a 3.4 increase in Mexican net domestic product at world prices. These benefits are substantially higher if NAFTAreduces real interest rates: if the real rate falls to 9 , then net domestic product increases by 9.2 in the long run. – The results in this papers are preliminary and should not be cited –