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Regional Economic Integration: The Canada-U.S. Experience

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Author Info
STEVEN GLOBERMAN (Western Washington University)

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Abstract

This paper assesses the nature and degree of bilateral economic integration preceding and following the implementation of the Canada- U.S. Free Trade Agreement (CUSTA). Various price-based and quantity- based indicators of economic integration are assessed. Results vary depending upon the indicator; however, on balance, the results provide only modest evidence of incremental integration in the post-CUSTA period. The findings serve as a caution against managers and policymakers assuming that regional integration is an inevitable dynamic and basing strategies and policies around this assumption.

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Paper provided by EconWPA in its series International Finance with number 0404007.

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Date of creation: 07 Apr 2004
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Handle: RePEc:wpa:wuwpif:0404007

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Web page: http://129.3.20.41

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Related research
Keywords: economic integration free trade agreements trade foreign direct investment price convergence

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F - International Economics

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References listed on IDEAS
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  1. Devereux, Michael B. & Lane, Philip R., 2003. "Understanding bilateral exchange rate volatility," Journal of International Economics, Elsevier, vol. 60(1), pages 109-132, May. [Downloadable!] (restricted)
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  2. Philippe Bacchetta & Eric van Wincoop, 1998. "Does exchange rate stability increase trade and capital flows?," Research Paper 9818, Federal Reserve Bank of New York. [Downloadable!]
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  3. Jeffrey Frankel & Andrew Rose, 2002. "An Estimate Of The Effect Of Common Currencies On Trade And Income," The Quarterly Journal of Economics, MIT Press, vol. 117(2), pages 437-466, May. [Downloadable!] (restricted)
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  4. Charles Engel & John H. Rogers, 1998. "Relative Price Volatility: What Role Does the Border Play?," Discussion Papers in Economics at the University of Washington 0061, Department of Economics at the University of Washington. [Downloadable!]
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  5. Pinelopi Koujianou Goldberg & Michael M. Knetter, 1997. "Goods Prices and Exchange Rates: What Have We Learned?," Journal of Economic Literature, American Economic Association, vol. 35(3), pages 1243-1272, September. [Downloadable!] (restricted)
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  6. Daniel Trefler, 2004. "The Long and Short of the Canada-U.S. Free Trade Agreement," American Economic Review, American Economic Association, vol. 94(4), pages 870-895, September. [Downloadable!] (restricted)
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  7. John F. Helliwell, 2001. "Canada: Life beyond the Looking Glass," Journal of Economic Perspectives, American Economic Association, vol. 15(1), pages 107-124, Winter. [Downloadable!] (restricted)
  8. Yan, Beiling, 2002. "Purchasing Power Parity: A Canada/U.S. Exploration," Economic Analysis (EA) Research Paper Series 2002002e, Statistics Canada, Analytical Studies Branch. [Downloadable!]
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