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Dynamics of the U.S.-Canada Softwood Lumber Trade: Market and Welfare Effects of the 2006 Softwood Lumber Agreement


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  • Baek, Jungho


This article examines the effects of macroeconomic variables (i.e., housing starts, disposable income, and the exchange rate), market variables (i.e., lumber price and wage rate) and the 2006 Softwood Lumber Agreement (SLA06) on U.S. lumber imports from Canada. It also looks at the welfare consequences of the SLA06. Results suggest that macroeconomic variables are more important than lumber price in determining the bilateral trade in softwood lumber. It is also found that, although the SLA06 has a significant negative effect on lumber imports from Canada, the market and welfare impacts of the trade restriction are moderate.

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Bibliographic Info

Article provided by Estey Centre for Law and Economics in International Trade in its journal Estey Centre Journal of International Law and Trade Policy.

Volume (Year): 12 (2011)
Issue (Month): 2 ()

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Handle: RePEc:ags:ecjilt:117820

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Keywords: exchange rates; housing starts; softwood lumber trade; trade restrictions; U.S. import demand; Financial Economics; Industrial Organization; International Relations/Trade; Political Economy; Public Economics;


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