; I will be examining the changes in the mango market between the US and Mexico. I will be looking at the price and imports/exports of mangos in Mexico and the US before and after NAFTA and see the effect on these two countries.In 1994 NAFTA drastically changed the economies in North America; I will be examining the changes in the mango market between the US and Mexico. I will be looking at the price and imports/exports of mangos in Mexico and the US before and after NAFTA and see the effect on these two countries. Examining these goods will help me understand benefits and challenges NAFTA had with fruits and vegetables but more specifically mangos. Additionally, I want to see which country has the comparative advantage and absolute advantage in mangos. This is my thesis now u must write a paper on this. Attached are documents and a guide on what my paper needs.
Rough Draft Instructions
We are expecting a 10-15 page rough draft of your paper that contains the following:
Example Summary Statistics Table
Table 1: Summary Statistics: Exports of Good Y Between US and Mexico
| (1) | (2) | (3) | (4) | |
| VARIABLES | N | Mean | Median | Standard Deviation |
| Exports to Mexico | 25 | 30,909 | 29,180 | 8,782 |
| Exports to US | 25 | 265,662 | 190,545 | 233,361 |
| Rel. Prod. Mexico | 25 | 0.913 | 0.725 | 0.641 |
| Rel. Prod. US | 25 | 0.348 | 0.340 | 0.0792 |
Example Regression Table:
Table 2: Regression Results: Exports of Good Y to Mexico Measured in US Dollars
| (1) | |
| VARIABLES | Exports to Mexico |
| Year | 498.0 |
| (397.6) | |
| NAFTA | 1,273 |
| (1,280.3) | |
| Constant | -966,083 |
| (791,396) | |
| Observations | 25 |
| R-squared | 0.217 |
Robust standard errors in parentheses
*** p<0.01, ** p<0.05, * p<0.1
Example of writing up regression coefficients
To empirically examine the impact of NAFTA on the exports of good Y, I estimate the following equation using ordinary least squares (OLS):
where Exports denotes the dollar value of exports of good Y from the US to Mexico, Year is a linear time trend, and NAFTA is a dummy variable equal to one after the introduction of NAFTA in 1994.
Table 2 presents the estimation results of estimating equation. The coefficient on NAFTA in column (1) of Table 2, indicates that after the introduction of NAFTA the amount of exports of good Y from the US to Mexico increased by $1,273 dollars, however the size of the change in exports is not statistically significant. This result indicates that the introduction of NAFTA did not increase the amount of exports of good Y from the US to Mexico.
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