Continental Economic Integration

Modeling the Impact on Labor

Bibliographic Data

ID9750997
AuthorsJames Stanford (corresponding author)
Year1993
Volume526
Issue1
Pages92-110
Publication date1993-03-01
Peer ReviewedYes
Open AccessYes
TypeARTICLE
VenueThe Annals of the American Academy of Political and Social Science (JOURNAL)
Journal identifiersISSN: 0002-7162 • E-ISSN: 1552-3349
PublisherSAGE Publications (PUBLISHER • US)
DOI10.1177/0002716293526001008
OpenAlexW2113282052
LanguageEN
Citations received4
References cited2

Many labor representatives in the United States and Canada fear that a North American Free Trade Agreement (NAFTA) will lead to a redirection of investment toward low-wage regions of the continent, consequently reducing wages and employment opportunities in higher-wage areas. These concerns seem to contradict several traditional conclusions of economic theory, and the results of quantitative economic models have suggested that a NAFTA could be beneficial for workers in all three countries. These modeling efforts, however, have been based on highly restrictive assumptions regarding international investment flows, the functioning of labor markets, and other features of the economy. More realistic trade and investment models are needed in order to fairly judge the risks and opportunities posed to labor by continental integration. Some suggestions for future research are provided

Economic integration · Economics · Foreign direct investment · Free trade · Free trade agreement · International economics · International trade · Investment (military · Labour economics · Macroeconomics · Order (exchange · Political science · Wage · Economic Theory and Policy · Finance · Global trade and economics

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