This paper assesses the impact of the North American Free Trade Agreement on Mexican manufacturing plants' output prices and markups. We distinguish between Mexican goods that are exported and those sold domestically, and decompose their prices separately into markups and marginal costs. We then...

Recent research on international trade focuses on firm-product-level heterogeneity and the role of uncertainty in shaping international trade. This article contributes to the literature by examining product-level dynamics within firms in the context of Mexican trade integration under NAFTA. The...