Regional and Interregional Impacts of the U.S.-Canada Free Trade Agreement

摘要

The report describes an attempt to develop a prototype model that could be used to assess the impacts of alternative free trade agreements at the national and subnational levels. Initial attention has been focused on the potential impacts of the Free Trade Agreement between Canada and the United States. National-level assessments suggested that the impacts for the United States would be very small. At the subnational level, attention was focused on Illinois and New York states (although ten states were separated in the model). The results for both states were about the same as those at the national level (in percentage terms), namely about 0.1% of gross state products. The volume of change in New York was about three times as large as in Illinois but still very small and, for both states, smaller than the growth that could be anticipated in a normal year.