 ECONOMIC INTEGRATION IN NORTH AMERICARamon A. CASTILLO Ponce () and Ramon de Jesus RAMIREZ ACOSTA Applied Econometrics and International Development, 2008, vol. 8, issue 2, 111-122 Abstract: 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. Keywords: economic synchronization; cointegration; comovements. (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eaa:aeinde:v:8:y:2008:i:2_9 Ordering information: This journal article can be ordered from Access Statistics for this article More articles in Applied Econometrics and International Development from Euro-American Association of Economic Development |
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