Examining NAFTA

Brad DeLong -- one of the architects of NAFTA -- had his belief shaken. He acknowledges the real benefits that had occurred because of NAFTA, but expected much bigger effects. Tyler Cowen points him to a new paper which might re-embolden his faith. The bottom line:

The more globalized parts of Mexico -- most of all the north -- have done extremely well since NAFTA passed. The biggest problems remain in the least globalized parts, most of all the south and big chunks of the interior.

So measuring Mexico in the aggregate will leave a NAFTA-believer disappointed. But properly weighting the measurement shows something very different: NAFTA has been a huge success. And all without a giant sucking sound or even one poisoned strawberry.