TY - JOUR
T1 - The effects of currency fluctuations and trade integration on industry trade between Canada and Mexico
AU - Bahmani-Oskooee, Mohsen
AU - Bolhassani, Marzieh
AU - Hegerty, Scott W.
PY - 2010/12
Y1 - 2010/12
N2 - Since studies of North American trade flows tend to focus on the United States as the main trading partner, trade between Canada and Mexico has received relatively little attention. Here, we examine bilateral trade flows for 62 Canadian export industries to Mexico and 45 import industries from Mexico to assess the effects of currency fluctuations and trade integration on these individual trade flows. We find that Mexico's largest export industries respond to depreciation more than Canada's largest export industries do. Both countries' trade flows are influenced even more by trade integration. Since there is evidence of strong intra-industry trade between these two countries, we can attribute this effect to the exploitation of economies of scale.
AB - Since studies of North American trade flows tend to focus on the United States as the main trading partner, trade between Canada and Mexico has received relatively little attention. Here, we examine bilateral trade flows for 62 Canadian export industries to Mexico and 45 import industries from Mexico to assess the effects of currency fluctuations and trade integration on these individual trade flows. We find that Mexico's largest export industries respond to depreciation more than Canada's largest export industries do. Both countries' trade flows are influenced even more by trade integration. Since there is evidence of strong intra-industry trade between these two countries, we can attribute this effect to the exploitation of economies of scale.
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U2 - 10.1016/j.rie.2010.05.001
DO - 10.1016/j.rie.2010.05.001
M3 - Article
AN - SCOPUS:77957333215
SN - 1090-9443
VL - 64
SP - 212
EP - 223
JO - Research in Economics
JF - Research in Economics
IS - 4
ER -