Embrace or Not? An Empirical Study of the Impact of Globalization on the Country’s Sustainability in the Case of NAFTA
Abstract
:1. Introduction
2. Materials and Methods
2.1. Methodology
2.2. Data Description
2.2.1. Tariff Rate Data
2.2.2. International Trade Data
2.3. Model
2.3.1. Empirical Strategy for Demand Elasticity
2.3.2. Empirical Strategy for Inverse Supply Elasticity
2.3.3. Welfare Estimation
3. Results
3.1. Country Level
3.2. Industry Level
4. Discussion
4.1. Discussions and Implications
4.2. Contributions
5. Conclusions
Author Contributions
Funding
Acknowledgments
Conflicts of Interest
Appendix A. Number of RTA’s in Force
Appendix B. The Appendix Describes the ISIC Revision 3 Used in This Paper
01—Agriculture, hunting, and related service activities |
02—Forestry, logging, and related service activities |
05—Fishing, operation of fish hatcheries and fish farms; service activities incidental to fishing |
10—Mining of coal and lignite; extraction of peat |
11—Extraction of crude petroleum and natural gas; service activities incidental to oil and gas extraction excluding surveying |
12—Mining of uranium and thorium ores |
13—Mining of metal ores |
14—Other mining and quarrying |
15—Manufacture of food products and beverages |
16—Manufacture of tobacco products |
17—Manufacture of textiles |
18—Manufacture of wearing apparel; dressing and dyeing of fur |
19—Tanning and dressing of leather; manufacture of luggage, handbags, saddlery, harness, and footwear |
20—Manufacture of wood and of products of wood and cork, except furniture; manufacture of articles of straw and plaiting materials |
21—Manufacture of paper and paper products |
22—Publishing, printing, and reproduction of recorded media |
23—Manufacture of coke, refined petroleum products, and nuclear fuel |
24—Manufacture of chemicals and chemical products |
25—Manufacture of rubber and plastics products |
26—Manufacture of other non-metallic mineral products |
27—Manufacture of basic metals |
28—Manufacture of fabricated metal products, except machinery and equipment |
29—Manufacture of machinery and equipment n.e.c. |
30—Manufacture of office, accounting and computing machinery |
31—Manufacture of electrical machinery and apparatus n.e.c. |
32—Manufacture of radio, television, and communication equipment and apparatus |
33—Manufacture of medical, precision, and optical instruments, watches and clocks |
34—Manufacture of motor vehicles, trailers, and semi-trailers |
35—Manufacture of other transport equipment |
36—Manufacture of furniture; manufacturing n.e.c. |
37—Recycling |
Appendix C. The Appendix Describes the Equation Derivation for Welfare Estimation
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Variable | Mean | SD | Min | Max | p25 | p50 | p75 | p99 |
---|---|---|---|---|---|---|---|---|
MFN rate | 6.560 | 13.04 | 0 | 800.3 | 1.450 | 5 | 8 | 35.00 |
Actual rate | 0.0500 | 1.180 | 0 | 156.8 | 0 | 0 | 0 | 0 |
Industries | ||
---|---|---|
1 | 10.51 | 0.21 |
2 | 10.97 | 0.33 |
3 | 2 | 0.34 |
4 | 2 | 0.30 |
5 | 2.07 | 0.44 |
6 | 6.79 | 0.17 |
7 | 8.60 | 0.32 |
8 | 2 | 0.40 |
9 | 3.28 | 0.25 |
10 | 2 | 0.35 |
11 | 6.88 | 0.34 |
12 | 6.09 | 0.28 |
13 | 6.60 | 0.18 |
14 | 3.15 | 0.23 |
15 | 3.23 | 0.38 |
16 | 7.06 | 0.19 |
Country | Welfare Change |
---|---|
United States | −7.5% |
Canada | −9.0% |
Mexico | −11.8% |
Industries | △Welfare | ||
---|---|---|---|
USA | Canada | Mexico | |
Agriculture of Hunting and Fishing | −38.76 | −64.16 | 14.87 |
Mining and quarrying | 34.34 | 10.82 | 4.72 |
Manu. of food products and tobacco | 4.21 | 5.10 | 17.69 |
Manu. of textiles and wearing appeal | 2.01 | 2.16 | 1.98 |
Tanning and dressing of leather | −52.71 | −6.49 | −6.46 |
Manu. of wood | −5.47 | −8.46 | −1.69 |
Manu. of paper and publishing | −26.07 | −22.93 | 26.05 |
Manu. of coke, refined petroleum products and nuclear fuel | 1.81 | 3.25 | 15.30 |
Manu. of chemicals and chemical products | −8.08 | −5.61 | −5.60 |
Manu. of rubber and plastics products | −9.15 | −5.05 | −3.40 |
Manu. of other non-metallic mineral products | 3.86 | 4.72 | 5.07 |
Manu. of basic and fabricated metals | −4.41 | −2.37 | −8.70 |
Manu. of machinery and equipment not elsewhere classified (n.e.c.) | 5.65 | −53.77 | −9.70 |
Manu. of electrical and computing machinery and apparatus n.e.c. | −1.92 | −1.73 | −2.00 |
Manu. of motor vehicles and transport equipment | −1.62 | −1.65 | −42.70 |
Manu. of furniture and recycling | 4.29 | 5.38 | 2.12 |
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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
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