HAS THE NAFTA FOUNDATION AFFECTED BUSINESS CYCLES LENGTH? AN INTRODUCTION.

Dimitrios DAPONTAS, Panagiotis EVANGELOPOULOS

Abstract


This paper is explaining the relationship between NAFTA foundation and business cycles length. Has the participation in a multinational organization changed their frequency? Initially; we used GDP per capita growth annual data for each country countries (Canada, Mexico and USA) for 63 years (1950-2012). The data was cut for each country in two pieces one before the 1995 and one on the year of integration and after. Then we selected their spectral density plots in order to find periodicity eliminating the background noise from a periodogram. The results show that Canada doubled its cycle length progressively. Mexico and USA seem to have currently smaller but growing cycles than they used to have.


Full text: PDF

Keyword(s)


Business cycles, NAFTA, developed and developing economies economic integration, economic growth

JEL Codes


E32, F13, F15, O11, O52

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