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Canadian Provinces in World Trade: Engagement and Detachment

Author

Listed:
  • Michael Anderson
  • Stephen Smith

Abstract

The authors test whether the findings of John McCallum (1995) and John F. Helliwell (1996)--that the Canada-U.S. border substantially decreases trade--are evident in Canada's trade with the rest of the world. They also test whether there are differences across provinces and between each province's exports and imports in this 'border effect.' The authors find Canada's border with the United States is neither larger nor smaller than the border with the rest of the world and that the border's size varies dramatically across provinces. Provinces exhibit distinct borders for exports and imports, suggesting British Columbia is an export platform, while Ontario and Quebec are import platforms.

Suggested Citation

  • Michael Anderson & Stephen Smith, 1999. "Canadian Provinces in World Trade: Engagement and Detachment," Canadian Journal of Economics, Canadian Economics Association, vol. 32(1), pages 22-38, February.
    • Handle: RePEc:cje:issued:v:32:y:1999:i:1:p:22-38
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    Citations

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    Cited by:

    1. Kristian Behrens & Cem Ertur & Wilfried Koch, 2012. "‘Dual’ Gravity: Using Spatial Econometrics To Control For Multilateral Resistance," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 27(5), pages 773-794, August.
    2. Delina E. Agnosteva & James E. Anderson & Yoto V. Yotov, 2014. "Intra-national Trade Costs: Measurement and Aggregation," NBER Working Papers 19872, National Bureau of Economic Research, Inc.
    3. Nitsch, Volker, 2002. "Border effects and border regions: Lessons from the German unification," HWWA Discussion Papers 203, Hamburg Institute of International Economics (HWWA).
    4. James E. Anderson & Eric van Wincoop, 2004. "Trade Costs," Journal of Economic Literature, American Economic Association, vol. 42(3), pages 691-751, September.
    5. Mr. Itai Agur, 2016. "Products and Provinces: A Disaggregated Panel Analysis of Canada’s Manufacturing Exports," IMF Working Papers 2016/193, International Monetary Fund.
    6. Salvador Gil-Pareja & Rafael Llorca-Vivero & José Martínez-Serrano, 2015. "The Uneven Impact of Continental Boundaries on Trade," Open Economies Review, Springer, vol. 26(2), pages 237-257, April.
    7. J.A. Bikker, 2009. "An extended gravity model with substitution applied to international trade," Working Papers 09-17, Utrecht School of Economics.
    8. Baldwin, Richard E. & Skudelny, Frauke & Taglioni, Daria, 2005. "Trade effects of the euro: evidence from sectoral data," Working Paper Series 446, European Central Bank.
    9. Brown, W. Mark, 2003. "Overcoming Distance, Overcoming Borders: Comparing North American Regional Trade," Economic Analysis (EA) Research Paper Series 2003008e, Statistics Canada, Analytical Studies Branch.
    10. James E. Anderson & Eric van Wincoop, 2003. "Gravity with Gravitas: A Solution to the Border Puzzle," American Economic Review, American Economic Association, vol. 93(1), pages 170-192, March.
    11. Tomas Havranek & Zuzana Irsova, 2017. "Do Borders Really Slash Trade? A Meta-Analysis," IMF Economic Review, Palgrave Macmillan;International Monetary Fund, vol. 65(2), pages 365-396, June.
    12. Farrukh Suvankulov, 2015. "Revisiting National Border Effects in Foreign Trade in Goods of Canadian Provinces," Staff Working Papers 15-28, Bank of Canada.
    13. Brown, W. Mark, 2003. "Vaincre les distances, vaincre les frontières : comparaison des échanges régionaux en Amérique du Nord," Série de documents de recherche sur l'analyse économique (AE) 2003008f, Statistics Canada, Direction des études analytiques.
    14. Francisco Requena & Carlos Llano, 2010. "The border effects in Spain: an industry-level analysis," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 37(4), pages 455-476, November.
    15. Daniel L. Millimet & Thomas Osang, 2007. "Do state borders matter for U.S. intranational trade? The role of history and internal migration," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 40(1), pages 93-126, February.
    16. Anderson, Michael A. & Smith, Stephen L.S., 2007. "How does history matter? Hysteresis in Canadian trade," The North American Journal of Economics and Finance, Elsevier, vol. 18(3), pages 279-291, December.
    17. Salvador Gil-Pareja & Rafael Llorca-Vivero & Jose Martinez-Serrano, 2006. "The border effect in Spain: The Basque Country case," Regional Studies, Taylor & Francis Journals, vol. 40(4), pages 335-345.
    18. Salvador Gil‐Pareja & Rafael Llorca‐Vivero & José A. Martínez‐Serrano & Josep Oliver‐Alonso, 2005. "The Border Effect in Spain," The World Economy, Wiley Blackwell, vol. 28(11), pages 1617-1631, November.
    19. Carolyn L. Evans, 2003. "The Economic Significance of National Border Effects," American Economic Review, American Economic Association, vol. 93(4), pages 1291-1312, September.
    20. Tihomir Janjicek, 2009. "Structural Economic Efects Through Free Trade Agrriments," Economic Thought and Practice, Department of Economics and Business, University of Dubrovnik, vol. 18(1), pages 43-58, june.
    21. Salvador Gil-Pareja & Rafael Llorca & Josè A. Martinez-Serrano, 2011. "Is There A Continental Bias In Trade?," ERSA conference papers ersa10p792, European Regional Science Association.
    22. Klodt, Henning, 2003. "Border effects in passenger air traffic," Kiel Working Papers 1142, Kiel Institute for the World Economy (IfW Kiel).
    23. Russell Hillberry & David Hummels, 2002. "Explaining Home Bias in Consumption: The Role of Intermediate Input Trade," NBER Working Papers 9020, National Bureau of Economic Research, Inc.

    More about this item

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F15 - International Economics - - Trade - - - Economic Integration

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