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Measuring the Impact of Free Trade: Local Analysis versus Regional and National Models

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  • Fernand Martin

    (Department of Economics, University of Montreal, Montreal, Quebec H3C 3J7 Canada)

Abstract

This paper presents a method to evaluate the sectoral impact of the U.S.-Canada free trade agreement on local economies. This method is an alternative to national impact models whose sectoral rates are not attuned to the characteristics of local economies. The method identifies the winners and losers of the implementation of free trade in a static framework. Then, taking into account the past experience of the region under the stress of tariff reductions, it uses the effective rotation of jobs to infer the likelihood that in the long run local firms will either rationalize production and become more export-oriented or disappear.

Suggested Citation

  • Fernand Martin, 1991. "Measuring the Impact of Free Trade: Local Analysis versus Regional and National Models," International Regional Science Review, , vol. 14(1), pages 1-14, April.
    • Handle: RePEc:sae:inrsre:v:14:y:1991:i:1:p:1-14
    DOI: 10.1177/016001769101400101
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    References listed on IDEAS

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    1. Harris, Richard, 1984. "Applied General Equilibrium Analysis of Small Open Economies with Scale Economies and Imperfect Competition," American Economic Review, American Economic Association, vol. 74(5), pages 1016-1032, December.
    2. Martin, F. & Tremblay, R., 1986. "The Canadian Industries of Telecommunication Equipments and Computers, and North American Trade Liberalization," Cahiers de recherche 8634, Universite de Montreal, Departement de sciences economiques.
    3. Lester, J. & Morehen, T., 1988. "New Estimates Of Canadian Tariff Rates By Industry And Commodity," Working Papers-Department of Finance Canada 1988-2, Department of Finance Canada.
    4. Glickman, Norman J., 1977. "Econometric Analysis of Regional Systems," Elsevier Monographs, Elsevier, edition 1, number 9780122865503 edited by Mills, Edwin S..
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    1. David J. Hayward & Rodney A. Erickson, 1995. "The North American Trade of U.S. States: A Comparative Analysis of Industrial Shipments, 1983-91," International Regional Science Review, , vol. 18(1), pages 1-31, January.
    2. Pedro Telhado Pereira & Maria do Carmo Seabra, 1993. "Identifying Vulnerable Industries and Regions: The Proposed European Single Market and Portuguese Manufacturing," International Regional Science Review, , vol. 16(3), pages 249-264, December.

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