Why would you expect the two time series to be cointegrated


Problem

Suppose you have data on real GDP for Mexico and the USA. A priori, would you expect the two time series to be cointegrated? Why? What does trade theory have to say about the relationship between the two? Obtain quarterly data on the two time series and analyze them from the perspective of cointegration.

The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.

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Finance Basics: Why would you expect the two time series to be cointegrated
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