Study On The Path And Effects Of North America’s Economic Integration

Since the1980s, many countries have joined the ranks of regional integration,establishing a variety of integration organizations, which had a profound impact onthe world’s economy. As the first integration organization formed by developedcountries and a developing country, the North American Free Trade has madebrilliant achievements after years of development, and now has become theworld’s second-largest economy following the European Union, which indeed hada profound impact on the entire American or even the global economy.Nevertheless, Before the establishment NAFTA was full of controversy, eventoday these controversies still exist.This paper analyze systematically the effects of North America’s economicintegration on trade, investment, economic growth and other aspects on basis of alarge number of charts and statistical data, then through the duramy Variablesmodely of a linear regression, the paper prove that NAFTA indeed had positiveimpact on Mexico’s economy.The paper reviewed the current situation of NorthAmerica’s economic integration, which pave the way to the fellowing analysis.Then, the paper describe the process of North America’s economic integration.Nestly based on the theory of regional economic integration, the paper empiricallyanalyze the effects on trade, industrial structure, investment, economic growth,then through the duramy Variables model of a linear regression the paper provethat NAFTA indeed had positive impact on Mexico’s economy.Through in-depth studying the theory of regional economic integration, wedeepen understanding to the theory of regional integration. It also providevaluable experiences for those countries which sought to establish or furtherdeepen the North-South regional integration.