Effects of NAFTA on the Mexican Economy

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International Trade

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Effects of NAFTA on the Mexican Economy

How has NAFTA affected Mexico's economy? Mexico's policymakers expected that, with NAFTA, Mexico's per capita income would catch up with the average incomes in the U.S. and Canada, which hasn't been the case. However, NAFTA has improved other indicators of development in Mexico. For instance, the percentage of people in extreme and moderate poverty has reduced greatly and trade with the US has soared. This video also takes a look at how the economic crisis in the U.S. affected Mexico and asks why Mexico's economy hasn't grown even faster with NAFTA. The data in this video can be found in a paper titled "NAFTA and the Mexican Economy" by M. Angeles Villareal.

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