A Dynamic Evaluation of the Effects of Western Hemisphere Integration on the U.S. Economy
نویسندگان
چکیده
Regionalism is an integral part of the broader economic policy reforms that have occurred in the Western Hemisphere over the last decade. This chapter examines the dynamic effects of regional integration arrangements in the Western Hemisphere on the U.S. economy, including U.S. agriculture and agricultural trade, by taking into account changes in saving-investment and capital accumulation. Through close linkage between open trade and economic growth, especially through technological spillovers embodied in the trade, countries within the hemisphere, including the United States, will enjoy economic gains from more trade in the Americas. Besides its comparative advantage in trade of agricultural commodities and services, the United States, as a wealthy country, also has a comparative advantage in financial capital markets. This allows U.S. households to further enjoy the benefit of hemisphere-wide economic integration by accumulating assets of other nations in the hemisphere, especially when United States joins the Free Trade Area of the Americas (FTAA).
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