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I’ve Been Everywhere (Except Mexico): Investor Responses to NAFTA’s Cross-Border Trucking Provisions
Date Issued
2015-01
Date Available
2015-01-21T14:05:40Z
Abstract
We investigate the response of US trucking firms to the removal of barriers to cross-border trucking under NAFTA. This was done via a program implemented in 2007, cancelled in 2009, and reinstated in 2011. We find that, unsurprisingly, the program’s start resulted in lower stock returns, particularly for border firms. However, later policy changes indicate that investors, and particularly those in US multinationals, viewed the pilot as beneficial. We use a model of endogenous exporting to show that this can arise from incorrect expectations of import competition.
Type of Material
Working Paper
Publisher
University College Dublin. School of Economics
Series
UCD Centre for Economic Research Working Paper Series
WP15/01
Copyright (Published Version)
2015 the authors
Web versions
Language
English
Status of Item
Not peer reviewed
This item is made available under a Creative Commons License
File(s)
Owning collection
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1563
Acquisition Date
Mar 29, 2024
Mar 29, 2024
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Mar 29, 2024