This bachelor thesis examines the Free Trade Agreement (FTA) between Mexico and the countries that resembles the European Union(EU) prior to the expansion in 2004, hereafter(EU15). The purpose is to analyze the effects of the FTA between the trading parties and investigate whether the FTA has resulted in positive effects on export volumes. The model includes 16 countries and is estimated with panel data between the years 1997-2016. We apply a gravity model as econometric framework and perform two regressions, one with fixed effects and one with random effects. Our results suggest that export volumes from Mexico to the EU on an aggregated level have increased for Mexico and the EU has increased. However, in contrast to previous estimates, our results show that the FTA have generated negative effects on trade creation between the trading parties.
| Identifer | oai:union.ndltd.org:UPSALLA1/oai:DiVA.org:sh-37556 |
| Date | January 2018 |
| Creators | Andersson, Jesper, Sundqvist, Linn |
| Publisher | Södertörns högskola, Institutionen för samhällsvetenskaper, Södertörns högskola, Institutionen för samhällsvetenskaper |
| Source Sets | DiVA Archive at Upsalla University |
| Language | English |
| Detected Language | English |
| Type | Student thesis, info:eu-repo/semantics/bachelorThesis, text |
| Format | application/pdf |
| Rights | info:eu-repo/semantics/openAccess |
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