Economic Integration and Regional Industrial Specialization: Evidence from the Canadian- US FTA Experience
AbstractWe investigate the impact of Canada-U.S. trade integration on the degree of industrial specialization of the Canadian regions. Trade integration is captured through the decrease of trade-weighted tariffs that were boosted by the implementation of the Canadian-U.S. Free Trade Agreement. We found strong evidence to support integration’s long-run impact on the patterns of absolute industrial diversification. Significantly, this new finding remains robust to the exclusion of the primary sectors and to the potential presence of unit root in the data. Our results lead us to support a positive long-run relationship between trade integration and industrial diversification.
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Bibliographic InfoPaper provided by University of Ottawa, Department of Economics in its series Working Papers with number 0408E.
Length: 29 pages
Date of creation: 2004
Date of revision:
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Regional specialization; trade integration; FTA; core-periphery structure; panel data;
Find related papers by JEL classification:
- F14 - International Economics - - Trade - - - Empirical Studies of Trade
- F15 - International Economics - - Trade - - - Economic Integration
- R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
- R15 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Econometric and Input-Output Models; Other Methods
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