Document Type

Article

Publication Date

10-15-2002

Keywords

North American trade, free trade, intra-trade

Abstract

Determinants of U.S.- Canada Intra-industry trade in industry groups: a) Food and live products, b) Manufacturing products, and c) Machinery and transportation products are investigated. The analysis uses the OECD data for 1997 U.S.-Canada bilateral trade flows combined with the U.S. industry characteristics data from the U.S. Economic Census. Levels of intra-industry trade, measured by the Grubel Lloyd Index, were regressed on a number of industry characteristics using OLS techniques. Empirical results show that selected measures of product differentiation, economies of scale, and oligopolistic behavior are important determinants of U.S.-Canada bilateral trade in the selected industries. There are however, differences among different industry groups.

Publisher

Department of Economics, South Dakota State University

Series Number

2002-6

Number of Pages

19

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Economics Commons

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