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Estimating Export Response in Canadian Provinces to the Canada-US Softwood Lumber Agreement

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  • Sumeet Gulati
  • Nisha Malhotra

Abstract

We estimate the degree of trade diversion from provinces named under the Softwood Lumber Agreement (SLA) to provinces not named. Our regression results indicate that the SLA had a significant impact on the exports of non-named SLA provinces. Controlling for other factors, the SLA by itself would have increased exports from these provinces four times. The corresponding effect for the provinces named in the SLA is estimated at minus 5 percent. This decrease is not, however, statistically significant.

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Bibliographic Info

Article provided by University of Toronto Press in its journal Canadian Public Policy.

Volume (Year): 32 (2006)
Issue (Month): 2 (June)
Pages: 157-172

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Handle: RePEc:cpp:issued:v:32:y:2006:i:2:p:157-172

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  1. McCallum, John, 1995. "National Borders Matter: Canada-U.S. Regional Trade Patterns," American Economic Review, American Economic Association, vol. 85(3), pages 615-23, June.
  2. Bruce A. Blonigen & Thomas J. Prusa, 2001. "Antidumping," NBER Working Papers 8398, National Bureau of Economic Research, Inc.
  3. Malhotra, Nisha & Gulati, Sumeet, 2003. "The Users Of Lumber And The Us-Canada Softwood Lumber Agreement: An Event Study," Working Papers 15842, University of British Columbia, Food and Resource Economics.
  4. Thomas J. Prusa, 1997. "The Trade Effects of U.S. Antidumping Actions," NBER Chapters, in: The Effects of U.S. Trade Protection and Promotion Policies, pages 191-214 National Bureau of Economic Research, Inc.
  5. Deardorff, Alan V., 1984. "Testing trade theories and predicting trade flows," Handbook of International Economics, in: R. W. Jones & P. B. Kenen (ed.), Handbook of International Economics, edition 1, volume 1, chapter 10, pages 467-517 Elsevier.
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