International Programs

This paper addresses how the implementation of North American Free Trade Agreement (NAFTA) has affected the use of Information Technology (IT) in Mexico. In order to answer this question this thesis analyzes the direct and indirect effects of NAFTA on Mexico's economic and regulatory environment, and how this influences the use of IT among households and firms in Mexico. Empirically, multiple regression analysis has been applied in order to measure the effects of NAFTA on various IT indicators. The descriptive and empirical evidence presented in this paper, suggests that IT use in Mexico has changed since the implementation of NAFTA. Specifically, it appears that the indirect effects of NAFTA have increased investment and foreign firm activity in Mexico, which has ultimately increased IT use. Overall, NAFTA has worked to augment previous liberalization movements in Mexico, and has aided in creating a friendlier IT environment for both consumers and industry. However, the uniform proliferation of IT throughout Mexico, especially among domestic firms and within the more rural areas, appears to be weak. NAFTA, though helpful, could have been more effective in stimulating IT adoption if it were aided by further government interventions and if more focus was directed at building up a more conducive IT infrastructure.