Economic integration in North America

• Ramon A. Castillo Ponce ^[2] ; Ramon de Jesus Ramirez Acosta ^[1]
  1. [1] Universidad Autónoma de Baja California

     Universidad Autónoma de Baja California

     México

     
  2. [2] California State University
• Localización: Applied econometrics and international development, ISSN 1578-4487, Vol. 8, Nº. 2, 2008, págs. 111-122
• Idioma: inglés
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• Resumen

  • Formal analysis of economic synchronization in North America is scarce. In this document we conduct an econometric exercise to determine the existence of common movements at short-run and long-run horizons among the gross domestic products of Canada, Mexico and the United States. Cointegration and common features tests suggest a significant degree of economic interdependence. In particular, for the sample period 1980-2006 we identify the existence of a common trend and two common cycles. Interestingly, we find that the North American economies have been highly synchronized since the 1980’s; a common trend and a common cycle are identified for the sub-sample period 1980-1993. We conclude that the signing of the North American Free Trade Agreement (NAFTA) was not the trigger that prompted economic integration, but primarily an event that contributed to strengthen a process that had already begun