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Has the border narrowed?

Author

Listed:
  • Janet Ceglowski

Abstract

In the late 1980s, Canada's provinces traded 20 times more with one another than with U.S. states of comparable size and distance. In other words, the Canada-U.S. border exerted a strong effect on the pattern of Canada's continental trade patterns. Since then, globalization and the formation of the Canada-U.S. and North American free trade areas could have reduced the impact of the border on continental trade patterns. However, estimates from a gravity model of aggregate Canadian trade reveal no evidence of a narrowing border, at least through 1996. The border effect appears remarkably stable both over time and across equation specifications.

Suggested Citation

  • Janet Ceglowski, 1998. "Has the border narrowed?," Working Papers 98-15, Federal Reserve Bank of Philadelphia.
    • Handle: RePEc:fip:fedpwp:98-15
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