Does Mexico Specialize in Polluting and Injurious Industries? Empirical Evidence from NAFTA-related US-Mexican Trade Expansion
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AbstractTrade expansion along with weaker environmental protection in developing countries has raised concerns that developing countries have specialized in the more polluting and injurious industries. I examine the pollution intensity of the NAFTA-related expansion in US-Mexican bilateral trade in the manufacturing sector using new detailed measures of air, water, metal and toxic pollution intensities and injury rates at the 4-digit Standard Industrial Classification level. Based on this resolution of pollution and injury measures, I do not find strong evidence of greater growth in the shares of US net imports from Mexico in the more polluting or injurious industries between the pre and post-NAFTA periods.