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The Determinants and Persistence of Canadian Tariff Rates

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  • Irene Henriques
  • Perry Sadorsky
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    Abstract

    An empirical investigation into the determinants and persistence of Canadian tariff rates was conducted. Empirical results indicate that both U.S. tariff rates and real Canadian GDP have causal influence on Canadian tariff rates. Canadian real trade balance and political affiliation, however, were found not to influence Canadian tariff rates. Evidence of persistence in Canadian tariff rates is also presented. The authors' results indicate that when Canadian tariff rates are increased, for whatever reason, the effect was prevalent in the fifth year even if the original stimulus had disappeared.

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    File URL: http://links.jstor.org/sici?sici=0008-4085%28199402%2927%3A1%3C112%3ATDAPOC%3E2.0.CO%3B2-9
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    Bibliographic Info

    Article provided by Canadian Economics Association in its journal Canadian Journal of Economics.

    Volume (Year): 27 (1994)
    Issue (Month): 1 (February)
    Pages: 112-28

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    Handle: RePEc:cje:issued:v:27:y:1994:i:1:p:112-28

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    Postal: Canadian Economics Association Prof. Steven Ambler, Secretary-Treasurer c/o Olivier Lebert, CEA/CJE/CPP Office C.P. 35006, 1221 Fleury Est Montréal, Québec, Canada H2C 3K4
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    Cited by:
    1. Sherman, Richard, 2002. "Import prices and the political economy of tariffs: evidence from Germany, Japan, and the United States, 1954-1994," Economics Letters, Elsevier, vol. 76(1), pages 11-17, June.

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