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


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  • 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)


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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Bibliographic 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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Keywords: Border effect; gravity model; Canada-U.S. trade;

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Cited by:
  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.
  2. James E. Anderson & Yoto V. Yotov, 2008. "The Changing Incidence of Geography," NBER Working Papers 14423, National Bureau of Economic Research, Inc.
  3. James E. Anderson & Eric van Wincoop, 2004. "Trade Costs," Boston College Working Papers in Economics 593, Boston College Department of Economics.
  4. Rigby, David & Brown, W. Mark & Beckstead, Desmond & Baldwin, John R., 2007. "Urban Economies and Productivity," Economic Analysis (EA) Research Paper Series 2007045e, Statistics Canada, Analytical Studies Branch.
  5. Rigby, David & Brown, W. Mark & Beckstead, Desmond & Baldwin, John R., 2007. "Economies urbaines et productivite," Serie de documents de recherche sur l'analyse economique (AE) 2007045f, Statistics Canada, Direction des etudes analytiques.
  6. Brown, W. Mark & Gu, Wulong & Baldwin, John R., 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.
  7. 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.
  8. Brown, W. Mark, 2003. "Vaincre les distances, vaincre les frontieres : comparaison des echanges regionaux en Amerique du Nord," Serie de documents de recherche sur l'analyse economique (AE) 2003008f, Statistics Canada, Direction des etudes analytiques.


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