Trade, Sensitivity and Feedbacks: Interregional Impacts of the US-Canada Free Trade Agreement

Ricardo Gazel, Geoffrey J. D. Hewings, Michael Sonis

Research output: Chapter in Book/Report/Conference proceedingChapter

Abstract

Most analyses of the impacts of existing and proposed free trade agreements have focused on the impacts measured at the national level. Given the significant differences in the composition of industry across states within nations, concern has been raised about the possibility of there being differences in impacts of free trade at the sub-national level. However, the states' economies of the United States do not function in isolation; there is substantial inter-state trading in goods and services and a complex pattern of flows of funds of various kinds (investments, taxes, transfers, pensions, dividends and so forth). As a result, international trading relationships between one state and a foreign country will have the capacity to create a complex set of ripple or multiplier effects on the rest of the United States. The basic nature of the interregional relationships are presented graphically for a four-region version of the interregional computable general equilibrium model in an attempt to reveal the subtle nature of the linkages and feedback effects.
Original languageEnglish (US)
Title of host publicationRecent Advances in Spatial Equilibrium Modelling: Methodology and Applications
EditorsJeroen C. J. M. van den Bergh, Peter Nijkamp, Piet Rietveld
Place of PublicationBerlin
PublisherSpringer
Pages278-300
Number of pages23
ISBN (Electronic)9783642800801
ISBN (Print)9783642800825
DOIs
StatePublished - 1996

Publication series

NameAdvances in Spatial Science
ISSN (Print)1430-9602
ISSN (Electronic)2197-9375

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