A Provincial View of Economic Integration /

This paper develops a method of testing levels of economic integration based upon consumption smoothing, and tests it using data on trade balances across Canadian provinces. The results indicate the provinces are highly integrated within Canada, but integration between Canada and the rest of the wor...

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Bibliographic Details
Main Author: Klein, Michael
Other Authors: Bayoumi, Tamim
Format: Journal
Language:English
Published: Washington, D.C. : International Monetary Fund, 1997.
Series:IMF Working Papers; Working Paper ; No. 1997/041
Online Access:Full text available on IMF
Description
Summary:This paper develops a method of testing levels of economic integration based upon consumption smoothing, and tests it using data on trade balances across Canadian provinces. The results indicate the provinces are highly integrated within Canada, but integration between Canada and the rest of the world is partial. Provincial trade balances respond only about half as much to events in the rest of the world as they do to events within Canada. In short, national borders appear to matter for intertemporal trade.
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Physical Description:1 online resource (29 pages)
Format:Mode of access: Internet
ISSN:1018-5941
Access:Electronic access restricted to authorized BRAC University faculty, staff and students