Economic integration and the diversification of regional exports: evidence from the Canadian-U.S. Free Trade Agreement
研究加美贸易一体化对加拿大各地区出口多样化的长期影响,发现贸易一体化显著促进了出口多样化,且该结论在排除初级部门和控制单位根后依然稳健。
We investigate the impact of Canada--U.S. trade integration on the degree of export diversification of the Canadian regions. Trade integration is captured through the decrease of trade-weighted tariffs that were boosted by 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 exports 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 export diversification. Copyright 2007, Oxford University Press.