The relationship between GDP and trade balance after 15 years of NAFTA

Authors

  • José Héctor Cortés Fregoso Universidad de Guadalajara
  • José Antonio Domínguez González Universidad de Guadalajara

DOI:

https://doi.org/10.32870/eera.vi22.727

Keywords:

Trade balance, mexican economy, NAFTA, GDP

Abstract

This article proposes an econometric analysis based on the economic theory proposed by Thirlwall's law to establish the relationship between gross domestic product (GDP) -as an endogenous variable- and the trade balance -as an explanatory variable. One of the purposes of this study is to determine whether there was a substantial change in the values of these variables after the North American Free Trade Agreement (NAFTA) came into force. For this purpose, chronological data for the period 1989-2007 have been considered. Another objective is to specify an econometric model that helps to establish forecasts of the variables in the model over time.

Author Biographies

José Héctor Cortés Fregoso, Universidad de Guadalajara

Profesor e investigador de tiempo completo con estudios de doctorado en economía y en educación. Departamento de Economía y de Métodos Cuantitativos del Centro Universitario de Ciencias Económico Administrativas (CUCEA) de la Universidad de Guadalajara.

José Antonio Domínguez González, Universidad de Guadalajara

Economista con maestría en administración. Profesor de tiempo completo en el Departamento de Ciencias Sociales y Jurídicas y profesor del el Departamento de Métodos Cuantitativos del Centro Universitario de Ciencias Económico Administrativas (CUCEA) de la Universidad de Guadalajara.

Published

2009-01-01

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