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Trade Liberalization and Inequality in Canada in the 1990s

In: The Review of Economic Performance and Social Progress 2001: The Longest Decade: Canada in the 1990s

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Author Info
Daniel Schwanen (Scientist at the Institute for Work and Health)
Abstract

In this chapter, Daniel Schwanen addresses the impact of the major trade liberalization efforts undertaken by Canada and its trading partners beginning with the Canada-U.S. Free Trade Agreement (FTA) in 1989. The author focuses in particular on the question of whether liberalized trade could have been a factor behind the emergence of greater inequalities in Canada in the 1990s. The author divides Canadian manufacturing industries into five groups according to their sensitivity to trade liberalization in the 1990s and to the direction taken by exports and imports following the opening of trade. Schwanen concludes from this exercise that more open trade may have contributed to inequalities in Canada, by favoring certain groups already doing relatively well, while being unfavourable to many less-skilled and lesser-paid groups.

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This chapter was published in: Andrew Sharpe, Executive Director & France St-Hilaire, Vice-President , Research & Keith Banting, Director (ed.) The Review of Economic Performance and Social Progress 2001: The Longest Decade: Canada in the 1990s, Centre for the Study of Living Standards, pages , 2001.

This item is provided by Centre for the Study of Living Standards & The Institutute for Research on Public Policy in its series The Review of Economic Performance and Social Progress with number v:1:y:2001:ds.

Handle: RePEc:sls:repsls:v:1:y:2001:ds

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Keywords: Trade; Inequality; Manufacturing; Canada; FTA; NAFTA; Free Trade; Free-trade; Trade Liberalization; Free Trade Agreements; United States; US; U.S.;

Find related papers by JEL classification:
O51 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - U.S.; Canada
L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General
F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies
F14 - International Economics - - Trade - - - Country and Industry Studies of Trade
F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
E65 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Studies of Particular Policy Episodes
E25 - Macroeconomics and Monetary Economics - - Macroeconomics: Consumption, Saving, Production, Employment, and Investment - - - Aggregate Factor Income Distribution
D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

  1. Williamson, Jeffrey G, 1998. "Globalization, Labor Markets and Policy Backlash in the Past," Journal of Economic Perspectives, American Economic Association, vol. 12(4), pages 51-72, Fall. [Downloadable!] (restricted)
  2. Elhanan Helpman, 1999. "The Structure of Foreign Trade," Journal of Economic Perspectives, American Economic Association, vol. 13(2), pages 121-144, Spring. [Downloadable!] (restricted)
    Other versions:
  3. Eugene Beaulieu, 2000. "The Canada-U.S. Free Trade Agreement and labour market adjustment in Canada," Canadian Journal of Economics, Canadian Economics Association, vol. 33(2), pages 540-563, May. [Downloadable!] (restricted)
    Other versions:
  4. Werner Antweiler & Daniel Trefler, 2000. "Increasing Returns and All That: A View From Trade," NBER Working Papers 7941, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  5. Riddell, W.C. & Sweetman, A., 2000. "Human Capital Formation in a Period of Rapid Change," UBC Departmental Archives 00-06, UBC Department of Economics.
  6. Elias Dinopoulos & Paul Segerstrom, 1999. "A Schumpeterian Model of Protection and Relative Wages," American Economic Review, American Economic Association, vol. 89(3), pages 450-472, June. [Downloadable!] (restricted)
  7. Peter Gottschalk & Timothy M. Smeeding, 1997. "Cross-National Comparisons of Earnings and Income Inequality," Journal of Economic Literature, American Economic Association, vol. 35(2), pages 633-687, June. [Downloadable!] (restricted)
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