Abstract
This paper focuses on the different effects that trade policy have on distinctive regions within a country by modeling the subnational impact of the Free Trade Agreement between the U.S. and Canada using an applied general equilibrium model. This study incorporates interregional labor mobility into the model and, by comparing the new results to those measured in the absence of labor migration, shows the importance of allowing for interregional labor mobility when modeling at the subnational level the effects of nationality of internationally designed policies.
Similar content being viewed by others
References
Armington PS (1969), A Theory of Demand for Products Distinguished by Place of Production. Int Monet Fund Staff Pap 16: 159–78
Ballard C, Fullerton D, Shoven J, Whalley J (1985), A General Equilibrium Model for Tax Policy Evaluation, Chicago: University of Chicago Press
Bandara JS (1991), Computable General Equilibrium Models for Development Policy Analysis in LDCs, J Econ Surv, 5:3–69
Bergman L (1988), Energy Policy Modeling: A Survey of General Equilibrium Approaches, J Pol Model, 10(4): 377–399
Borges AM (1986), Applied General Equilibrium Models: An Assessment of Their Usefulness for Policy Analysis. OECD Econ Stud, 7:8–43
Brown DK (1992), The Impact of a North American Free Trade Area: Applied General Equilibrium Models, in Lustig, Bosworth, and Lawrence (editors), Assessing the Impact of the North American Free Trade, The Brookings Institution, pages 26–63
Decaluwe B, Martens A (1988), CGE Modeling and Developing Economies: A Concise Empirical Survey of 73 Applications to 26 Countries, J Pol Model 10(4): 529–568
Dervis K, de Melo J, Robinson S (1982), General Equilibrium Models for Development Policy, Washington, D.C., The World Bank
Devarajan S, Lewis JD, Robinson S (1986), A Bibliography of Computable General Equilibrium (CGE) Models Applied to Developing Countries, Gianinni Foundation Working Paper No. 400, Division of Agriculture and Natural Resources, University of California, Berkeley
Devarajan S (1988), Natural Resources and Taxation in Computable General Equilibrium Models of Developing Countries, J Pol Model 10(4): 505–528
Gazel R (1994), Measuring the Regional Effects of the Free Trade Agreement Between the U.S. and Canada: The Need for Regional Policy, Working Paper, Center for Business and Economic Research, University of Nevada, Las Vegas
Henderson YK (1989), Tax Modeling in the Last Five Years, paper presented at the NBER workshop on Applied General Equilibrium Analysis, San Diego
Hewings GJD, Jensen RC (1986), Regional, Interregional and Multiregional Input-Output Analysis, in Nijkamp P (ed) Handbook of Regional and Urban Economics, Vol. 1, Amsterdam: North-Holland
Hinojosa-Ojeda R, Robinson S (1992), Labor Issues in a North American Free Trade Area in Lustig, Bosworth, and Lawrence (editors), Assessing the Impact of the North American Free Trade, The Brookings Institution, pp 69–98
Hulu E, Hewings GJD (1991), The Development and Use of Interregional Input-Output Models Under Conditions of Limited Information. Working Paper 93-P-2, Regional Economics Applications Laboratory, Urbana, Illinois
Kraybill DS (1992), Multiregional Computable General Equilibrium Models: An Introduction and Survey, Working Paper, University of Georgia
Jones R, Whalley J (1989), A Canadian Regional General Equilibrium Model and Some Applications, J Urban Econ 25: 368–404
Krueger AO (1992), Comment on ‘Labor Issues in a North American Free Trade Area’ by Raul Hinojosa-Ojeda and Serman Robinson, in Lustig, Bosworth, and Lawrence (editors), Assessing the Impact of the North American Free Trade, The Brookings Institution, pages 98–101
Krugman PR (1993), On the Relationship between Trade Theory and Location Theory, Rev Int Econ 1(2):110–122
Rao MSS, Lodh B, Lavalle L, Pierce J (1988), Open Borders: An Assessment of the Canada - U.S. Free Trade Agreement. Discussion Paper No. 344, Economic Council of Canada, Ottawa
Markusen JR, Wigle R (1987), U.S. - Canada Free Trade: Effects on Welfare and Sectoral Output/Employment Levels in the Short and Long Run. Working Paper, Washington, D.C., U.S. Department of Labor
de Melo J (1988), Computable General Equilibrium Models for Trade Analysis in Developing Countries: A Survey, J Pol Model 10:3
Nijkamp P, Rietveld P, Snickars F (1986), Regional and Multiregional Economic Models: A Survey. in P. Nijkamp (ed) Handbook of Regional and Urban Economics, Vol. 1, Amsterdam: North-Holland
Pereira, AM, Shoven JB, (1988), Survey of Dynamic Computational General Equilibrium Models for Tax Policy Evaluation, J Pol Model 10:3
Richardson JD (1989), Empirical Research on Trade Liberalization with Imperfect Competition: A Survey. OECD Econ Stud No. 12, Paris
Robinson S (1989), Multisectoral Models, in Handbook of Development Economics, Vol. II, H. Chenery and T. N. Srinivasan (editors), North-Holland, Amsterdam
Shoven J, Whalley J (1984), Applied General Equilibrium Models of Taxation and International Trade: An Introduction and Survey, J Econ Literature, 22(3):1007–1051
Stern RM, Francis J, Schumacher B (1986), Price Elasticities in International Trade: An Annotated Bibliography, Macmillan, for the Trade Policy Research Center, London
Taylor T, Berns M (1988), U.S. - Canada Free Trade Agreement: Winners and Losers in New England. Working Paper, Northeast-Midwest Institute
Whalley J (1984), The North-South Debate and the Terms of Trade: An Applied General Equilibrium Approach, Rev Econ Statist 46:224–234
Whalley J (1986), Hidden Challenges in Recent Applied General Equilibrium Exercises, in Peggott and Whalley (eds), New Developments in Applied General Equilibrium Analysis, Cambridge University Press, New York
Author information
Authors and Affiliations
Additional information
A longer version of this paper was presented and received the 8Th Annual Charles M. Tiebout Prize at the Western Regional Science Association Annual Meetings, Tucson, Arizona, February 1994. I would like to thank Geoffrey Hewings, Earl Grinols, Werner Baer, Chris Horak, and three anonymous referees for useful comments. I gratefully acknowledge the support of the Economic Development Administration, U.S. Department of Commerce and the Canadian Embassy in the early stages of this research project. I am solely responsible for any remaining errors in this paper.
Rights and permissions
About this article
Cite this article
Gazel, R.C. Free trade agreements and interregional labor migration: the case of the U.S. and Canada. Ann Reg Sci 30, 373–390 (1996). https://doi.org/10.1007/BF01581950
Received:
Accepted:
Issue Date:
DOI: https://doi.org/10.1007/BF01581950