Economic Integration In North America
Formal analysis of economic synchronization in North America is scarce. In this document we conduct an econometric exercise to determine the existence of common movements at short-run and long-run horizons among the gross domestic products of Canada, Mexico and the United States. Cointegration and common features tests suggest a significant degree of economic interdependence. In particular, for the sample period 1980-2006 we identify the existence of a common trend and two common cycles. Interestingly, we find that the North American economies have been highly synchronized since the 1980’s; a common trend and a common cycle are identified for the sub-sample period 1980-1993. We conclude that the signing of the North American Free Trade Agreement (NAFTA) was not the trigger that prompted economic integration, but primarily an event that contributed to strengthen a process that had already begun.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Volume (Year): 8 (2008)
Issue (Month): 2 ()
|Contact details of provider:|| Web page: http://www.usc.es/economet/eaa.htm|
|Order Information:|| Web: http://www.usc.es/economet/info.htm Email: |
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Alejandro Diaz-Bautista & Ramon A. Castillo Ponce, 2003. "Testing for Unit Roots: Mexico's GDP," Econometrics 0306007, EconWPA.
- Torres, Alberto & Vela, Oscar, 2003. "Trade integration and synchronization between the business cycles of Mexico and the United States," The North American Journal of Economics and Finance, Elsevier, vol. 14(3), pages 319-342, December.
- Gregory, Allan W & Head, Allen C & Raynauld, Jacques, 1997.
"Measuring World Business Cycles,"
International Economic Review,
Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 38(3), pages 677-701, August.
- Phillips, Kerk L., 1991. "A two-country model of stochastic output with changes in regime," Journal of International Economics, Elsevier, vol. 31(1-2), pages 121-142, August.
- Issler, Joao Victor & Vahid, Farshid, 2001. "Common cycles and the importance of transitory shocks to macroeconomic aggregates," Journal of Monetary Economics, Elsevier, vol. 47(3), pages 449-475, June.
- Viviana Fernandez & Ali M. Kutan, 2005.
"Do Regional Integration Agreements Increase Business-Cycle Convergence? Evidence From APEC and NAFTA,"
William Davidson Institute Working Papers Series
wp765, William Davidson Institute at the University of Michigan.
- Viviana Fern�ndez & Ali M. Kutan, 2005. "Do Regional Integration Agreements Increase Business-Cycle Convergence? Evidence from Apec and Nafta," Documentos de Trabajo 202, Centro de Economía Aplicada, Universidad de Chile.
- Bonomo, Vittorio & Tanner, J Ernest, 1972. "Canadian Sensitivity to Economic Cycles in the United States," The Review of Economics and Statistics, MIT Press, vol. 54(1), pages 1-8, February.
- Rosmy, Jean Louis & Daniel, Simons, 2007. "Is There A North American Business Cycle?. An Analysis Of The Period 1963-2002," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 7(2), pages 109-120.
- M. Ayhan Kose & Roberto Cardarelli, 2004. "Economic Integration, Business Cycle, and Productivity in North America," IMF Working Papers 04/138, International Monetary Fund.
- Beveridge, Stephen & Nelson, Charles R., 1981. "A new approach to decomposition of economic time series into permanent and transitory components with particular attention to measurement of the `business cycle'," Journal of Monetary Economics, Elsevier, vol. 7(2), pages 151-174.
- Jorge Herrera Hernández, 2004. "Business cycles in Mexico and the United States: Do they share common movements?," Journal of Applied Economics, Universidad del CEMA, vol. 0, pages 303-323, November.
- Johansen, Soren, 1991. "Estimation and Hypothesis Testing of Cointegration Vectors in Gaussian Vector Autoregressive Models," Econometrica, Econometric Society, vol. 59(6), pages 1551-80, November.
- Chiquiar, Daniel & Ramos-Francia, Manuel, 2005. "Trade and business-cycle synchronization: evidence from Mexican and U.S. manufacturing industries," The North American Journal of Economics and Finance, Elsevier, vol. 16(2), pages 187-216, August.
When requesting a correction, please mention this item's handle: RePEc:eaa:aeinde:v:8:y:2008:i:2_9. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (M. Carmen Guisan)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.