Productivity gap and asymmetric trade relations: The Canada-United States of America integration process

GONZÁLEZ, GERMÁN HÉCTOR

ECONOMIA

PUCP

Lugar: Lima; Año: 2014 vol. 37 p. 31 - 46

0254-4415

The utility of the European model of integration is currently in a discussion stage and the North American integration process as comparative framework has been largely ignored. The asymmetrical association between Canada and United States began long time before NAFTA and the study of this process could shed light on the usual problems faced by Latin American countries. This article attempts to encourage discussion about it. Particularly, there is evidence for a substantial and positive change in Canadian productivity that is contemporary to the Canada-US Free Trade Agreement (CUFTA). However, the enactment of the North American Free Trade Agreement (NAFTA) does not seem to have the same effect as the earlier treaty.