Has the border narrowed?

Janet Ceglowski

No 98-15, Working Papers from Federal Reserve Bank of Philadelphia

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.

Keywords: Canada; North American Free Trade Agreement (search for similar items in EconPapers)
Date: 1998
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