Did NAFTA deliver the economic transformation that Mexico's policymakers originally anticipated?
This video examines the impact of NAFTA on Mexico's economy, contrasting the unfulfilled promise of income convergence with the US and Canada against significant improvements in poverty reduction and trade growth.
While Mexican policymakers initially hoped NAFTA would allow the nation's per capita income to catch up with its North American neighbors, this goal remains unrealized. Despite this, the agreement has correlated with substantial progress in other development metrics, most notably a significant decline in both moderate and extreme poverty rates.
The video further explores the surge in trade volume between Mexico and the United States, while investigating the underlying reasons for Mexico's tempered growth rates. It also analyzes how economic volatility within the US has historically impacted the Mexican economy, drawing on research by M. Angeles Villareal.
