An Analysis of Comparative Advantage and Intra-North American Free Trade Agreement (NAFTA) Trade Performance

Macleans Mzumara, Anna Chingarande, Roseline Karambakuwa

Abstract


The authors analysed comparative advantage of Canada, Mexico and the United States in the context of the North American Free Trade Agreement (NAFTA). The authors found that there is empirical evidence as expected that the United States of America has a large number of products in which it has a comparative advantage in, followed by Canada. Mexico is the least competitive with fewer products compared to the United States of America and Canada. The authors have also concluded that having comparative advantage is not synonymous with trade performance in intra-regional trade as Mexico tends to benefit much more in spite of having a very few products in which it has comparative advantage as demonstrated by huge trade surpluses over Canada and the United States.

Full Text: PDF DOI: 10.5539/jsd.v5n11p103

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Journal of Sustainable Development   ISSN 1913-9063 (Print)   ISSN 1913-9071 (Online)

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