cover image: An index of Canada-U.S. economic integration : Indice de l'intégration économique canada-américaine

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An index of Canada-U.S. economic integration : Indice de l'intégration économique canada-américaine

8 Jun 2008

The views expressed in these reports do not necessarily reflect the views of the Department of Foreign Affairs and International Trade or of the Government of Canada. [...] More recently, with the rise in the value of the Canadian dollar vis-à-vis the U. S. dollar and the emergence of global value chains, which involve firms locating stages of production or sourcing inputs based on where it is most cost effective to do so, which would not necessarily be limited to Canada or the U. S., integration between the two economies could increase further but cannot be assumed. [...] The second method for measuring economic integration would be to measure the value of transactions that occur across borders, such as; trade in goods and services, the movement of capital and people and the flow of ideas. [...] Unless one were to argue that increased integration benefited the U. S. more than Canada, which is highly unlikely, one could conclude that the widening of the productivity gap between the two countries was more a result of independent factors at work in each of the two countries than a result of the trade agreements or Canada-U. [...] Also, the transaction method can be observed directly in the form of increased flows of goods, services or investment across the border unlike the border method which requires the estimation of unseen barriers or the outcome method which relies on an underlying theories to predict the outcome to be tested.
economics economy foreign direct investment free trade agreement canada business economic growth economic integration value nafta canadian economy north american free trade agreement gdp business cycle growth rates nominal gdp economy of canada canada–united states free trade agreement u.s. economy economy of the united states

Authors

Sydor, Aaron

ISBN
9780662464846 9780662464853
Pages
13
Published in
Canada

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