Critical Analysis On Institutional Capital On Trade And Environmentally Sustainable Development Under NAFTA

This paper summarizes the arguments and counterarguments within the scientific discussion on the issue of institutional capital and its implications on trade and environmentally sustainable development under NAFTA (North America Free Trade Agreement). The main purpose of the research is conducting a critical analysis the implications in terms of the relationship between cooperation, conflict and institutional capital, as well as their interactions with trade–marketing and environmentally sustainable development policy making under the framework of NAFTA. Systematization literary sources and approaches for solving the problem of whether the North American Free Trade Agreement should continue to operate despite the challenges and the institutional capital capacity built by the country members indicates that the renegotiation process should incorporate the institutional capital already developed. The relevance of the decision of this scientific problem is that created institutional capital has critical effects on trade, marketing and environmentally sustainable development. Investigation of the topic in the paper is carried out in the following logical sequence based on literature review aimed to create a relationship between the analytical variables in order to obtain a research construct. Methodological tools of the research methods were reviewing 24 years of research on the implementation of NAFTA. The object of research is the chosen countries, of United States, Canada and Mexico, because namely they have created the NAFTA The paper presents the results of an empirical analysis of the implications in terms of cooperation and conflict relationships as institutional capital and their interactions with trade-marketing and environmentally sustainable development policy making which showed that the research model proposed and used to analyze is useful as a research construct. The research empirically confirms and theoretically proves that although the existence of NAFTA is severely questioned, its institutional capital has positive effects on the implications of trade-marketing, however, environmentally sustainable development proves to be conflictive and highly contentious, although some positive effects are developing. The results of the research can be useful for the renegotiations processes of individual firms, industries, economic sectors and countries under NAFTA.