CANADA-U.S. Economic Integration Following Nafta

Deeper United States-Canada Economic Integration: Is it Desirable? Is it Inevitable?

“…Even so, temporary Canadian workers account for less than one-tenth of one percent of the U.S. labor force. Temporary workers of U.S. origin in Canada have also increased, but only by about one-half as much as Canadian workers in the USA (Globerman & Storer, 2003).…”

“…While the USA is by far the largest foreign direct investor in Canada, the U.S. share of the inward foreign direct investment stock in Canada actually declined from 72% in 1986 to 67% in 2001. Likewise, 69% of Canada's foreign direct investment went to the USA in 1986, but only 51% did so in 2001 (Globerman & Storer, 2003). Canada's share of U.S. foreign direct investment fell from 18.4% in 1988 to 10.2% in 2000 (Rugman, 2003).…”

Canada: Life Beyond the Looking Glass

“…2). 4 The fact that Canadian and U.S. domestic merchandise trading networks are much tighter than those across national borders, even after very large trade increases since the free trade agreement, suggests that similar results might well hold for services and for capital mobility. Indeed, aggregate data for interprovincial and international trade in services suggests that trade in services is even more tightly focused on national markets, with interprovincial trade being more than 30 times as intense as that between provinces and U.S. states, with little apparent change in the wake of the free trade agreement.…”

The Law of One Price: A Canada/U.S. exploration

“…4 The classification system is slightly different between the first four years and 1999. 5 See Globerman and Storer (2003). differentiation is generally higher.…”

“…This again suggests that trade cannot be the main factor that drives the movements of price differences for all product groups. If it was this factor, we would have expected a greater convergence for tradables than nontradables (see Globerman and Storer, 2003).…”