Research On Economic Effect Of Trade Of Mexico Within NAFTA

This paper is a research on the economic effect of NAFTA on the trade between Mexico and other nation-members. Among all the major regional economic integrated Organizations, NAFTA is the only one that is established between a developing country and developed countries. The notion of Free-trade, as one of the features of economic integration, is also the most important purpose of it. An economic collaboration between South and North countries is the future trend of international economic cooperation, hence a deep research on the economic relation between Mexico and the United-States and Canada is very instructive for future international integration.This paper examines how NAFTA effects the trade between Mexico, the only developing country and two other members, which are both developed countries. In this paper, I engage in testify the effect of NAFTA on trade of Mexico by exploring the range of trade volume.The first part of this article illustrates the meaning of the choice of theme, introduces the creating background and clarify important concepts. Also it concludes previous studies on economic integration and trade between South and North nations made by other scholars both home and abroad. The second part of this article is an introduction of the background of all nation-members of NAFTA before its establishment. It analyses the impact of NAFTA on the economy, society and politics of nation-members.With the well found statistics, the third part attempts to analyze since the establishment of NAFTA, the impact of trade between Member-States, especially the trade policy and trade situation of Mexico before and after the establishment of the NAFTA. In the second part of this section, I attempt to study the trade situation between Mexico and the United States, Mexico and Canada, and study the impact of NAFTA on Mexico trade with the volume of trade and types of goods.The fourth paragraph of this article will use the gravity model, with the trade and economic data before and after the establishment of free trade zone by-introducing the variation COM (0 or 1). Based on the results given by EVIEWS this section analyses the effect of FTA on the trade of Mexico.The fifth section of this article on the rules of origin to analyze the protective effect of the FTA for Mexican industrial exports. In the sixth section are my insplicational ideas for the process of Mexico and of China drawn through the analysis of trade development of Mexico.