Intra-industry trade, US-Canada trade, North American economics
Trade flow patterns associated with U.S. - Canada bilateral trade by industry groups are investigated (Food and live animal products, manufacturing products, chemical products, and machinery and transportation products). 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 indicate that selected measures of product differentiation, market power, and market structure are important influences upon U.S.-Canada bilateral trade in the selected industries. Finally, the empirical results indicate U.S.-Canada bilateral trade exhibits both inter- and intra-industry trade patterns.
Department of Economics, South Dakota State University
Number of Pages
Qasmi, Bashir and Fausti, Scott, "The Role of Industry Attributes in Determining the Pattern of U.S.-Canada Intra-Industry Trade in 1997" (2004). Economics Staff Paper Series. 176.