Measuring Product-Market Integration
Globalization -- the integration of national economies -- has become one of the most widely used buzzwords of the late 20th century. Yet there are remarkably few statistical measures of product-market integration across time, countries, and goods. In this paper we present some new measures of product-market integration based on price and quantity data. We find evidence of greater integration, but we also find that this process has not been uniform over time, countries, or goods.
Festschrift in Honor of Bob Lipsey, NBER Conference Volume, Blomstrom, Magnus and Linda Goldberg, eds., 2000, forthcoming.
Measuring Product-Market Integration, Michael M. Knetter, Matthew J. Slaughter. in Topics in Empirical International Economics: A Festschrift in Honor of Robert E. Lipsey, Blomstrom and Goldberg. 2001