Nafta and industrial efficiency in Baja California

Abstract

The figures before and after the North America Free Trade Agreement between Canada, Mexico and United States, suggest the intensification of the North region economic dynamics, particularly in the sates of Baja California. This paper attempts to determine whether the state’s extraordinary growth has been led by efficiency improvement or just by factor growth as a consequence of Free Trade and Foreign Direct Investment. The paper finds empirical evidence in both ways.Economic efficiency; productivity; and free trade