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Intra-Industry Trade with Mexico May Aid U.S. Global Competitiveness

Jesus Cañas, Aldo Heffner and Jorge Herrera Hernández

Since the enactment of NAFTA, U.S.–Mexico trade and manufacturing processes have become increasingly integrated through cross-border production linkages. A new Banco de México economic model finds that U.S. imports from Mexico can be explained by taking into account the level of U.S. exports—suggesting that trade with Mexico may have contributed to enhanced U.S. global competitiveness.

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