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Agricultural trade in North America: Trade creation, regionalism and regionalisation
Author(s) -
Miljkovic Dragan,
Paul Rodney
Publication year - 2003
Publication title -
australian journal of agricultural and resource economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.683
H-Index - 49
eISSN - 1467-8489
pISSN - 1364-985X
DOI - 10.1111/1467-8489.00218
Subject(s) - regionalisation , regionalism (politics) , international trade , agriculture , regional trade , international economics , economics , trade creation , international free trade agreement , free trade , trade diversion , economic geography , business , geography , political science , archaeology , politics , law , democracy
Trade creation in agricultural products is defined as a statistically significant positive break in the trend function of the growth in exports and imports between member countries. The present study attempts to determine the time of any break in the trend of real exports and imports between the Canada–USA Free Trade Agreement (CUSTA) and the North American Free Trade Agreement (NAFTA) member countries for the years 1980:I through 1999:II, and document the scale of the phenomenon. The present study finds trade creation only occurs in USA agricultural exports to Canada because of CUSTA. The results confirm the theory that the regionalism of NAFTA did not lead to regionalisation or an increasing share of intraregional international trade.