The Influence of lndustrial and Spatial Structure on Canada-U.S. Regional Trade.

Abstract

<p>The purpose of this dissertation is to determine the influence of spatial and industrial structure on the volume and composition of trade among Canadian and American regions. In so doing, it is intended to provide a better understanding of the causes and effects of trade on regions, the potential\ for further economic integration and the policy implications thereof.</p> <p>Both empirical and analytical modelling methods are used to analyze regional trade. Empirically, it is found that Canada-U.S. trade is heavily influenced by the spatial configuration of regions as well as their i1dustrial composition. It is also established that after controlling for distance and the industrial composition, there is a strong potential for further economic integration among Canadian and American regions. However, this potential is less than other studies have suggested.</p> <p>Using an analytical model, it is demonstrates that the welfare implications of i economic integration depends on the relative size of the trading regions, their I respective national markets and the tradeability of intermediate goods.</p> <p>Finally, the analysis shows that the potential for public policy to influence the I degree of integration and what form those policies might take depends crucially on the characteristics (geographic and industrial) of the trading regions.</p>