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This paper provides an empirical analysis of the comparative evolution of interprovincial & international trade and their effects on regional growth for the Canadian provinces since 1981. It first establishes the trend in the relationship between the ratios of interprovincial & international trade to gross domestic product, revealing a sharp break that occurred around 1991. The analysis casts doubt on the pure diversion model often used in trade modelling. The second part uses a conditional convergence-growth model to estimate the respective long-run effects of interprovincial & international trade on Canadian regional economies, specifically in relation to productivity, relative gross domestic product per capita, and job creation. The final chapter discusses implications of the results for regional economies & economic policy issues.
This paper assesses the costs of internal trade barriers and proposes policies to improve internal trade. Estimates suggest that complete liberalization of internal trade in goods can increase GDP per capita by about 4 percent and reallocate employment towards provinces that experience large productivity gains from trade. The positive impact highlights the need for federal, provincial and territorial governments to work together to reduce internal trade barriers. There is significant scope to build on the new Canadian Free Trade Agreement to more explicitly identify key trade restrictions, resolve differences, and agree on cooperative solutions.
During the past thirty years, international trade agreements have focused increasingly on areas of provincial jurisdiction. In The Provinces and Canadian Foreign Trade Policy, Kukucha argues that Canadian provinces have maintained a level of autonomy in response to these developments, sometimes even influencing Canada's global trade relations and the evolution of international norms and standards. The first comprehensive review of provincial foreign trade policy in Canada, the book highlights the convergence of debates related to federalism, Canadian foreign policy, and the global political economy as they are played out in the negotiation and implementation of international trade agreements. It will be of interest to students and practitioners of political science, public policy, and economics.
Provincial access to national markets are essential in achieving economies of scale and efficiencies of production, that are critical for most industries to be competitive on an international scale in an era of rapid trade globalization. Based on the 1990 Interprovincial Input-Output Accounts this publication presents an overview of interprovincial and international trade flows that examines provincial trade balances, relative importance between internal and external trade, commodities most traded and international trade linkages. It provides an analysis of economic activity underlying interprovincial trade in terms of Gross Domestic Product and jobs created by exports, economic dependence on trade and rates of economic returns to trade, and an industrial profile of trade looking at the economic contributions of industries through exports as well as industrial dependence on export markets. The document also presents a trade profile for each province and territory illustrated with summary charts and selected analytical statistical summaries, and contains several statistical tables on interprovincial and international trade flows.
This book is an empirical analysis of the geography of international trade, focused on interregional trade flows within Canada and the United States, but begins with an analysis of international trade flows at the international level to place Canada - United States interregional trade in a global context. At the international level, international trade flows are regionally focused and the intensity of that focus has not decreased over time. At the national level, there has been substantial change within the Canada - United States trading relationship. Prior to the establishment of free trade, Canada appeared to be moving into the lower-end of product quality trade relative to the United States, but now Canada appears to be moving into higher-end product quality trade with the United States. And at the regional level, trade flows have altered their spatial configuration since the establishment of free trade. Canadian provinces are now trading significantly more with the southern neighbours. The levels of interprovincial trade remain high, but the shares of provincial trade to and from the United States are now increasing.
This document examines interprovincial and international exports for each province and territory during 2 time periods (from 1992 to 2000 and from 2000 to 2002). It presents the compounded annual growth rate of exports and the ratio of exports to gross domestic product (GDP) for Canada and for each province and territory.
The benefits of trade are well founded in the early economic literature of Adam Smith and David Ricardo. Canada's regional diversity of resources, (natural and acquired); a deep-rooted political economic union; and, well developed transportation and communication linkages provided essential ingredients for the establishment of extensive trade among Canada's provinces. The value of these trade flows have, traditionally, been used as an indicator of economic interdependence. This paper presents a means of measuring gross domestic product and employment implicit in provincial trade flows using Statistics Canada's recently released 1990 Provincial Input-Output tables and interprovincial trade flows. Empirical results of this procedure reveal that more than one third of the private sector economy relies on provincial exports, and the economic contribution of interprovincial trade rivals that of international exports.