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

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  • STEVEN GLOBERMAN

    (Western Washington University)

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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Bibliographic Info

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://128.118.178.162

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

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  1. McCallum, John, 1995. "National Borders Matter: Canada-U.S. Regional Trade Patterns," American Economic Review, American Economic Association, vol. 85(3), pages 615-23, June.
  2. Steven Globerman, 2000. "Trade Liberalisation and the Migration of Skilled Professionals and Managers: The North American Experience," The World Economy, Wiley Blackwell, vol. 23(7), pages 901-922, 07.
  3. Devereux, Michael B & Lane, Philip R., 2002. "Understanding Bilateral Exchange Rate Volatility," CEPR Discussion Papers 3518, C.E.P.R. Discussion Papers.
  4. Daniel Trefler, 2001. "The Long and Short of the Canada-U.S. Free Trade Agreement," NBER Working Papers 8293, National Bureau of Economic Research, Inc.
  5. Yan, Beiling, 2002. "Purchasing Power Parity: A Canada/U.S. Exploration," Economic Analysis (EA) Research Paper Series 2002002e, Statistics Canada, Analytical Studies Branch.
  6. 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.
  7. Philippe Bacchetta & Eric Van Wincoop, 1998. "Does Exchange Rate Stability Increase Trade and Capital Flows?," NBER Working Papers 6704, National Bureau of Economic Research, Inc.
  8. Pinelopi K. Goldberg & Michael M. Knetter, 1996. "Goods Prices and Exchange Rates: What Have We Learned?," NBER Working Papers 5862, National Bureau of Economic Research, Inc.
  9. John F. Helliwell, 2001. "Canada: Life beyond the Looking Glass," Journal of Economic Perspectives, American Economic Association, vol. 15(1), pages 107-124, Winter.
  10. Frankel, Jeffrey & Rose, Andrew K., 2001. "An Estimate of the Effect of Common Currencies on Trade and Income," Working Paper Series rwp01-013, Harvard University, John F. Kennedy School of Government.
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