North American trade, free trade, intra-trade
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.
Department of Economics, South Dakota State University
Number of Pages
Qasmi, Bashir; Fausti, Scott; and Liuyi, Moore, "Analysis of U.S.-Canada Intra-Industry Trade" (2002). Economics Staff Paper Series. 164.