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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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File URL: http://128.118.178.162/eps/it/papers/0406/0406003.pdf
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Bibliographic Info

Paper provided by EconWPA in its series International Trade with number 0406003.

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Length: 40 pages
Date of creation: 08 Jun 2004
Date of revision:
Handle: RePEc:wpa:wuwpit:0406003

Note: Type of Document - pdf; pages: 40
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Web page: http://128.118.178.162

Related research

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

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References

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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.
  2. John F. Helliwell, 2001. "Canada: Life beyond the Looking Glass," Journal of Economic Perspectives, American Economic Association, vol. 15(1), pages 107-124, Winter.
  3. 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.
  4. 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.
  5. Bacchetta, Philippe & van Wincoop, Eric, 1998. "Does Exchange Rate Stability Increase Trade and Capital Flows?," CEPR Discussion Papers 1962, C.E.P.R. Discussion Papers.
  6. 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.
  7. Charles Engle & John Rogers, 1998. "Relative price volatility: what role does the border play?," International Finance Discussion Papers 623, Board of Governors of the Federal Reserve System (U.S.).
  8. 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.
  9. 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.
  10. Yan, Beiling, 2002. "Purchasing Power Parity: A Canada/U.S. Exploration," Economic Analysis (EA) Research Paper Series 2002002e, Statistics Canada, Analytical Studies Branch.
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