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Trade, Sensitivity and Feedbacks: Interregional Impacts of the US-Canada Free Trade Agreement

In: Recent Advances in Spatial Equilibrium Modelling

Author

Listed:
  • Ricardo Gazel

    (University of Illinois)

  • Geoffrey J. D. Hewings

    (University of Illinois)

  • Michael Sonis

    (University of Illinois)

Abstract

Most analyses of the impacts of existing and proposed free trade agreements have focused on the impacts measured at the national level. Given the significant differences in the composition of industry across states within nations, concern has been raised about the possibility of there being differences in impacts of free trade at the sub-national level. However, the states’ economies of the United States do not function in isolation; there is substantial inter-state trading in goods and services and a complex pattern of flows of funds of various kinds (investments, taxes, transfers, pensions, dividends and so forth). As a result, international trading relationships between one state and a foreign country will have the capacity to create a complex set of ripple or multiplier effects on the rest of the United States. The basic nature of the interregional relationships are presented graphically for a four-region version of the interregional computable general equilibrium model in an attempt to reveal the subtle nature of the linkages and feedback effects.

Suggested Citation

  • Ricardo Gazel & Geoffrey J. D. Hewings & Michael Sonis, 1996. "Trade, Sensitivity and Feedbacks: Interregional Impacts of the US-Canada Free Trade Agreement," Advances in Spatial Science, in: Jeroen C. J. M. Bergh & Peter Nijkamp & Piet Rietveld (ed.), Recent Advances in Spatial Equilibrium Modelling, chapter 14, pages 278-300, Springer.
    • Handle: RePEc:spr:adspcp:978-3-642-80080-1_14
    DOI: 10.1007/978-3-642-80080-1_14
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    Citations

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    Cited by:

    1. Hewings, Geoffrey J.D., 2014. "Spatially blind trade and fiscal impact policies and their impact on regional economies," The Quarterly Review of Economics and Finance, Elsevier, vol. 54(4), pages 590-602.
    2. James A. Giesecke & John R. Madden, 2013. "Evidence-based regional economic policy analysis: the role of CGE modelling," Cambridge Journal of Regions, Economy and Society, Cambridge Political Economy Society, vol. 6(2), pages 285-301.
    3. Ricardo C. Gazel & R. Keith Schwer, 1998. "Growth of International Exports among the States: Can a Modified Shift-Share Analysis Explain it?," International Regional Science Review, , vol. 21(2), pages 185-204, August.

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