Embrace or Not? An Empirical Study of the Impact of Globalization on the Country’s Sustainability in the Case of NAFTA
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School of Economics, The University of Sydney, Sydney 2006, Australia
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Discipline of International Business, The University of Sydney, Sydney 2006, Australia
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School of Business, Wuyi University, Nanping 354300, China
4
School of Economics and Management, Harbin Institute of Technology, Weihai 264209, China
5
Melbourne Business School, The University of Melbourne, Melbourne 3053, Australia
*
Author to whom correspondence should be addressed.
Sustainability 2018, 10(10), 3436; https://doi.org/10.3390/su10103436
Received: 21 August 2018
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Revised: 18 September 2018
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Accepted: 24 September 2018
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Published: 26 September 2018
(This article belongs to the Special Issue Globalization and Sustainable Urban-Regional Development)
This paper investigates the international trade role in economic development and sustainability. Specifically, a trade agreement is one of the most popular ways for a country to participate in trade, therefore we aim to estimate the relationship between a free trade agreement (FTA) and economic development on a country level, using the North American Free Trade Agreement as an example. Sustainability on an industrial level is also discussed in parallel. To achieve this, a counterfactual analysis is used to generate the welfare with and without the trade agreement to draw inference on the sustainability analysis. We find that the FTA does facilitate a country’s sustainability. However, it is less clear on an industrial level. This finding provides important evidence relating to a country’s sustainable development and has broadened the study scope regarding the impact of participating in an FTA with regard to economic sustainability.
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Keywords:
international trade; sustainability; economic development; NAFTA; FTA
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MDPI and ACS Style
Wang, H.; Liu, W.; Zhu, M.; Wang, Q. Embrace or Not? An Empirical Study of the Impact of Globalization on the Country’s Sustainability in the Case of NAFTA. Sustainability 2018, 10, 3436. https://doi.org/10.3390/su10103436
AMA Style
Wang H, Liu W, Zhu M, Wang Q. Embrace or Not? An Empirical Study of the Impact of Globalization on the Country’s Sustainability in the Case of NAFTA. Sustainability. 2018; 10(10):3436. https://doi.org/10.3390/su10103436
Chicago/Turabian StyleWang, Hexian, Wei Liu, Mengyuan Zhu, and Qing Wang. 2018. "Embrace or Not? An Empirical Study of the Impact of Globalization on the Country’s Sustainability in the Case of NAFTA" Sustainability 10, no. 10: 3436. https://doi.org/10.3390/su10103436
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