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articles: Spatial markets and the potential for economic integration between Canadian and U.S. regions

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Author Info
W. Mark Brown () (Departments of Geography and Agricultural Economics, McGill University, Burnside Hall, 805 Sherbrooke Street West, Montreal, QC H3A 2K6, Canada)
William P. Anderson (Department of Geography, Boston University, 675 Commonwealth Avenue, Boston, MA 02215-1401, USA)

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Abstract

The potential for further economic integration among Canadian and American regions is measured by comparing province-to-state trade with state-to-state trade, where the latter is used as a benchmark of integration. To accomplish this, an attraction constrained gravity model is derived from micro foundations and estimated. The analysis demonstrates that after controlling for variations in output, distance, wages, productivity, and localization economies, the border remains a significant barrier to trade, although much less than previous estimates of the border effect using internal Canadian trade as a benchmark. The model's results also indicate that the border's influence varies across sectors, and the influence appears to be, in part, related to the presence of tariff and non-tariff barriers.

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Publisher Info
Article provided by Springer in its journal Papers in Regional Science.

Volume (Year): 81 (2002)
Issue (Month): 1 ()
Pages: 99-120
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Handle: RePEc:spr:presci:v:81:y:2002:i:1:p:99-120

Note: Received: 1 February 1999
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Related research
Keywords: Border effect; gravity model; Canada-U.S. trade;

Find related papers by JEL classification:
F14 - International Economics - - Trade - - - Country and Industry Studies of Trade
R11 - Urban, Rural, and Regional Economics - - General Regional Economics - - - Analysis of Growth, Development, and Changes
R12 - Urban, Rural, and Regional Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
C51 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Construction and Estimation

Cited by:
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  1. Brown, W. Mark, 2003. "Overcoming Distance, Overcoming Borders: Comparing North American Regional Trade," Economic Analysis (EA) Research Paper Series 2003008e, Statistics Canada, Analytical Studies Branch. [Downloadable!]
  2. Brown, W. Mark, 2003. "Vaincre les distances, vaincre les frontières : comparaison des échanges régionaux en Amérique du Nord," Série de documents de recherche sur l'analyse économique (AE) 2003008f, Statistics Canada, Direction des études analytiques. [Downloadable!]
  3. James E. Anderson & Eric van Wincoop, 2004. "Trade Costs," NBER Working Papers 10480, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  4. Baldwin, John R. & Brown, W. Mark & Gu, Wulong, 2008. "Geographic Market Access and the Effects of Trade on Length of Production Run, Product Diversity and Plant Scale of Canadian Manufacturing Plants, 1974 to 1999," Economic Analysis (EA) Research Paper Series 2008052e, Statistics Canada, Analytical Studies Branch. [Downloadable!]
  5. Baldwin, John R. & Beckstead, Desmond & Brown, W. Mark & Rigby, David, 2007. "Économies urbaines et productivité," Série de documents de recherche sur l'analyse économique (AE) 2007045f, Statistics Canada, Direction des études analytiques. [Downloadable!]
  6. Ramon Tremosa-i-Balcells & Joan Costa-i-Font, . "The "relative competitiveness" patterns of Spanish regions after the European Monetary Union (1999-2002)," Studies on the Spanish Economy 169, FEDEA. [Downloadable!]
  7. Baldwin, John R. & Beckstead, Desmond & Brown, W. Mark & Rigby, David, 2007. "Urban Economies and Productivity," Economic Analysis (EA) Research Paper Series 2007045e, Statistics Canada, Analytical Studies Branch. [Downloadable!]
Statistics
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