Ramon A. CASTILLO PONCE () Ramon de Jesus RAMIREZ ACOSTA
Abstract
Formal analysis of economic synchronization in North America is scarce. In this document we conduct an econometric exercise to determine the existence of common movements at short-run and long-run horizons among the gross domestic products of Canada, Mexico and the United States. Cointegration and common features tests suggest a significant degree of economic interdependence. In particular, for the sample period 1980-2006 we identify the existence of a common trend and two common cycles. Interestingly, we find that the North American economies have been highly synchronized since the 1980’s; a common trend and a common cycle are identified for the sub-sample period 1980-1993. We conclude that the signing of the North American Free Trade Agreement (NAFTA) was not the trigger that prompted economic integration, but primarily an event that contributed to strengthen a process that had already begun.
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Find related papers by JEL classification: C32 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Time-Series Models; Dynamic Quantile Regressions E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation F4 - International Economics - - Macroeconomic Aspects of International Trade and Finance
References listed on IDEAS Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
Gregory, Allan W & Head, Allen C & Raynauld, Jacques, 1997.
"Measuring World Business Cycles,"
International Economic Review,
Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 38(3), pages 677-701, August.
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