EconPapers    
Economics at your fingertips  
 

The effects of currency fluctuations and trade integration on industry trade between Canada and Mexico

Mohsen Bahmani-Oskooee (), Marzieh Bolhassani and Scott Hegerty ()

Research in Economics, 2010, vol. 64, issue 4, 212-223

Abstract: Since studies of North American trade flows tend to focus on the United States as the main trading partner, trade between Canada and Mexico has received relatively little attention. Here, we examine bilateral trade flows for 62 Canadian export industries to Mexico and 45 import industries from Mexico to assess the effects of currency fluctuations and trade integration on these individual trade flows. We find that Mexico's largest export industries respond to depreciation more than Canada's largest export industries do. Both countries' trade flows are influenced even more by trade integration. Since there is evidence of strong intra-industry trade between these two countries, we can attribute this effect to the exploitation of economies of scale.

Keywords: Canada; Mexico; Industry; trade; Bounds; testing (search for similar items in EconPapers)
Date: 2010
References: View references in EconPapers View complete reference list from CitEc
Citations View citations in EconPapers (2) Track citations by RSS feed

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S1090-9443(10)00027-X
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:reecon:v:64:y:2010:i:4:p:212-223

Access Statistics for this article

Research in Economics is currently edited by Federico Etro

More articles in Research in Economics from Elsevier
Series data maintained by Dana Niculescu ().

 
Page updated 2017-12-05
Handle: RePEc:eee:reecon:v:64:y:2010:i:4:p:212-223