caa a22 4500 378898914 CHVBK 20180305123513.0 cr unu---uuuuu 161128e20040718xx s 000 0 eng 10.2202/1538-0653.1260 doi (NATIONALLICENCE)gruyter-10.2202/1538-0653.1260 Coulombe Serge 1University of Ottawa, scoulomb@uottawa.ca Intranational Trade Diversion, the Canada-United States Free Trade Agreement, and the L Curve [Elektronische Daten] [Serge Coulombe] This paper provides an empirical analysis of the comparative evolution of intranational and international trade in the Canadian provinces since 1981. We establish a striking empirical fact, the L curve, that characterizes the comparative evolution of intranational (interprovincial) and international trade shares to GDP between 1981 and 2000. We also use a panel data model to evaluate the impact of changing trade costs induced by the CUSFTA on the intensity of international and interprovincial trade. The analysis casts doubt on the intranational trade diversion hypothesis, common in trade models such as the structural gravity model of Anderson and van Wincoop (2003) that was used recently to revisit the Canada-U.S. border effect. International trade appears to complement rather than substitute for interprovincial trade. ©2011 Walter de Gruyter GmbH & Co. KG, Berlin/Boston F10, F14, F15 nationallicence trade diversion nationallicence FTA nationallicence border effect nationallicence gravity model nationallicence Topics in Economic Analysis & Policy De Gruyter 4/1(2004-07-18) 4:1 2004 4 bejeap https://doi.org/10.2202/1538-0653.1260 text/html Onlinezugriff via DOI 1 research article jats NATIONALLICENCE 856 40 https://doi.org/10.2202/1538-0653.1260 text/html Onlinezugriff via DOI NATIONALLICENCE 100 1- Coulombe Serge 1University of Ottawa, scoulomb@uottawa.ca NATIONALLICENCE 773 0- Topics in Economic Analysis & Policy De Gruyter 4/1(2004-07-18) 4:1 2004 4 bejeap CC0 http://creativecommons.org/publicdomain/zero/1.0 nationallicence BK010053 XK010053 XK010000 NATIONALLICENCE NATIONALLICENCE NL-gruyter