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Economic integration and the diversification of regional exports: evidence from the Canadian-US free trade agreement

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  • Michel Beine
  • Serge Coulombe

Abstract

We investigate the impact of Canada--U.S. trade integration on the degree of export diversification of the Canadian regions. Trade integration is captured through the decrease of trade-weighted tariffs that were boosted by 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 exports 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 export diversification. Copyright 2007, Oxford University Press.

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Bibliographic Info

Paper provided by ULB -- Universite Libre de Bruxelles in its series ULB Institutional Repository with number 2013/10417.

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Date of creation: Jan 2007
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Publication status: Published in: Journal of Economic Geography (2007) v.7 n° 1,p.93-111
Handle: RePEc:ulb:ulbeco:2013/10417

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Cited by:
  1. Dick Nuwamanya Kamuganga, 2012. "What Drives Africa's Export Diversification?," IHEID Working Papers 15-2012, Economics Section, The Graduate Institute of International Studies.
  2. Nicole Palan, 2010. "Measurement of Specialization – The Choice of Indices," FIW Working Paper series 062, FIW.
  3. Hajime Takatsuka & Dao-Zhi Zeng, 2011. "Economic Integration and Welfare: Manufacturing vs. Agricultural Markets," ERSA conference papers ersa11p1720, European Regional Science Association.
  4. Beine, Michel & Bos, Charles S. & Coulombe, Serge, 2012. "Does the Canadian economy suffer from Dutch disease?," Resource and Energy Economics, Elsevier, vol. 34(4), pages 468-492.
  5. Michel Beine & Charles S. Bos & Serge Coulombe, 2009. "Does the Canadian Economy suffer from Dutch Disease?," Tinbergen Institute Discussion Papers 09-096/4, Tinbergen Institute.
  6. Michael Jetter & Elena Huergo, 2013. "The roots of export diversification," DOCUMENTOS DE TRABAJO CIEF 010600, UNIVERSIDAD EAFIT.

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