Revisiting Border Effects to Trade Across Canadian Provinces from the Internal Trade-Migration Nexus

Mustafa Rafat Zaman ()
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Mustafa Rafat Zaman: Bangladesh

Journal of Economic Development, 2024, vol. 49, issue 3, 133-147

Abstract: In this paper, I study how interprovincial migration impacts interprovincial trade in the wake of several provincial agreements and re-examine the extent and pattern of interprovincial trade barriers in Canada. For estimation, I use a migration augmented gravity model of trade and panel data on interprovincial trade and migration flows during 2000-2016. I find that while most agreements increased trade in goods and services respectively, albeit to different extents, between member provinces, others did not. I also find that the interprovincial barriers to trade are remarkably smaller than have been previously estimated and that the barriers are larger for trade in services than goods. However, over the last two decades in Canada trade barriers have decreased by 17 percent for services but increased by 52 percent for goods flows across provinces.

Keywords: Interprovincial Trade; Interprovincial Trade Barriers; Interprovincial Migration; Gravity Model (search for similar items in EconPapers)
JEL-codes: F13 F14 F15 F16 J61 (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:ris:jecdev:0096

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