ASYMMETRIC PATTERN OF INTRA-INDUSTRY TRADE BETWEEN THE UNITED STATES AND CANADA

This study proposes alternative rationales to explain an asymmetric intra-industry trade pattern between the United States and Canada after the free trade agreement became effective. Using time-series data, a gravity equation is developed which enables us to examine the impacts of relative market size, exchange rates, and transportation costs on bilateral trade. It is found that these three effects have to be taken together in order to explain the asymmetric intra-industry trade pattern. Exchange rate impacts on bilateral trade are found to the most significant, indicating that U.S. dollar appreciation causes a more asymmetric trade pattern for agricultural goods than for large-scale manufacturing goods.


Issue Date:
2003
Publication Type:
Report
PURL Identifier:
http://purl.umn.edu/23625
Total Pages:
16
Series Statement:
Agribusiness & Applied Economics Report No. 526




 Record created 2017-04-01, last modified 2017-08-02

Fulltext:
Download fulltext
PDF

Rate this document:

Rate this document:
1
2
3
 
(Not yet reviewed)