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Economic Integration and Regional Industrial Specialization: Evidence from the Canadian- US FTA Experience

Author

Listed:
  • Michel Beine

    (Dulbea, University of Brussels, Belgium)

  • Serge Coulombe

    () (Department of Economics, University of Ottawa)

Abstract

We investigate the impact of Canada-U.S. trade integration on the degree of industrial specialization of the Canadian regions. Trade integration is captured through the decrease of trade-weighted tariffs that were boosted by the implementation of the Canadian-U.S. Free Trade Agreement. We found strong evidence to support integration’s long-run impact on the patterns of absolute industrial diversification. Significantly, this new finding remains robust to the exclusion of the primary sectors and to the potential presence of unit root in the data. Our results lead us to support a positive long-run relationship between trade integration and industrial diversification.

Suggested Citation

  • Michel Beine & Serge Coulombe, 2004. "Economic Integration and Regional Industrial Specialization: Evidence from the Canadian- US FTA Experience," Working Papers 0408E, University of Ottawa, Department of Economics.
  • Handle: RePEc:ott:wpaper:0408e
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    File URL: http://sciencessociales.uottawa.ca/economics/sites/socialsciences.uottawa.ca.economics/files/0408E.pdf
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    References listed on IDEAS

    as
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    Citations

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    Cited by:

    1. Yose Rizal Damuri & Raymond Atje & Arya B. Gaduh, 2006. "Integration and Trade Specialization in East Asia," Trade Working Papers 21995, East Asian Bureau of Economic Research.
    2. Ion Lucian Ceapraz, 2008. "The Concepts Of Specialisation And Spatial Concentration And The Process Of Economic Integration: Theoretical Relevance And Statistical Measures. The Case Of Romania’S Regions," Romanian Journal of Regional Science, Romanian Regional Science Association, vol. 2(1), pages 68-93, June.
    3. Natalia Vechiu & Farid Makhlouf, 2014. "Economic integration and specialization in production in the EU27: does FDI influence countries’ specialization?," Empirical Economics, Springer, vol. 46(2), pages 543-572, March.

    More about this item

    Keywords

    Regional specialization; trade integration; FTA; core-periphery structure; panel data;

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F15 - International Economics - - Trade - - - Economic Integration
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • R15 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Econometric and Input-Output Models; Other Methods

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