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International Trade, Interprovincial Trade, and Canadian Provincial Growth

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  • Serge Coulombe

    (Department of Economics, University of Ottawa)

Abstract

This paper provides an empirical analysis of the comparative evolution of interprovincial and international trade and their effects on regional growth for the Canadian provinces since 1981. Two sets of results emerge from the analysis. First, it appears that the rapid expansion of international trade following the Canada-United States Free Trade Agreement with a certain lag did not produce a decrease in interprovincial trade. To the contrary, we found a positive relation between the two trade channels, especially since 1991. Second, using a conditional convergence econometric framework, we found that increased international trade openness has a positive and significant long-run effect on regional standards of living, productivity, and employment. Increased interprovincial trade has a positive effect on GDP per capita and employment; however, the effect appears to be close to zero on labour productivity.

Suggested Citation

  • Serge Coulombe, 2002. "International Trade, Interprovincial Trade, and Canadian Provincial Growth," Working Papers 0204E, University of Ottawa, Department of Economics.
    • Handle: RePEc:ott:wpaper:0204e
    as

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    File URL: http://sciencessociales.uottawa.ca/economics/sites/socialsciences.uottawa.ca.economics/files/0204E.pdf
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    References listed on IDEAS

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    Cited by:

    1. Wessel N. Vermeulen, 2013. "Resource Income and the Effect on Domestic Neighbours: A case study on Canadian Provinces," DEM Discussion Paper Series 13-05, Department of Economics at the University of Luxembourg.
    2. Courchene, Thomas J., 2003. "FTA at 15, NAFTA at 10: a Canadian perspective on North American integration," The North American Journal of Economics and Finance, Elsevier, vol. 14(2), pages 263-285, August.

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    More about this item

    Keywords

    Canada and globalization; regional economic integration; conditional convergence; FTA; Canadian provincial disparities;
    All these keywords.

    JEL classification:

    • F15 - International Economics - - Trade - - - Economic Integration
    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
    • O51 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - U.S.; Canada
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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