IDEAS home Printed from https://ideas.repec.org/p/cir/circah/2020pe-34.html
   My bibliography  Save this paper

The Reliance of Canadian Imports on the US is Worse Than you Think

Author

Listed:
  • Julien Martin
  • Florian Mayneris

Abstract

The reliance of the Canadian economy on its trade with the US has long been discussed (Beaulieu and Song, 2015), and the debate was recently revived by the corona-crisis and the renegotiation of NAFTA. A key statistics often used to gauge this dependency is that more than half of Canadian imports originate from the US. We argue here that Canada's reliance on the US is even greater than what is usually thought. By examining data recording the value of Canadian imports by product, production country, exporting country and transport mode, we show that the US is not only the main supplier of Canada, but also a critical logistical hub for Canadian imports that are not produced in the US. Half of the goods imported from non-US suppliers enter Canada through the US-Canada border. In total, about 80% of Canadian imports are tied to the US, either because the goods are produced there, or because the goods cross the US to enter Canada.

Suggested Citation

  • Julien Martin & Florian Mayneris, 2020. "The Reliance of Canadian Imports on the US is Worse Than you Think," CIRANO Papers 2020pe-34, CIRANO.
    • Handle: RePEc:cir:circah:2020pe-34
    as

    Download full text from publisher

    File URL: https://cirano.qc.ca/files/publications/2020PE-34.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Marcel P. Timmer & Erik Dietzenbacher & Bart Los & Robert Stehrer & Gaaitzen J. Vries, 2015. "An Illustrated User Guide to the World Input–Output Database: the Case of Global Automotive Production," Review of International Economics, Wiley Blackwell, vol. 23(3), pages 575-605, August.
    2. Eugene Beaulieu & Yang Song, 2015. "What Dependency Issues? Re-Examining Assumptions about Canada's Reliance on the U.S. Export Market," SPP Research Papers, The School of Public Policy, University of Calgary, vol. 8(3), January.
    3. Gaulier, Guillaume & Zignago, Soledad, 2004. "Notes on BACI (analytical database of international trade). 1989-2002 version," MPRA Paper 32401, University Library of Munich, Germany.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Alain Dudoit & Molivann Panot & Thierry Warin, 2021. "Towards a multi-stakeholder Intermodal Trade-Transportation Data-Sharing and Knowledge Exchange Network," CIRANO Project Reports 2021rp-28, CIRANO.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Matteo Bugamelli & Silvia Fabiani & Stefano Federico & Alberto Felettigh & Claire Giordano & Andrea Linarello, 2018. "Back on Track? A Macro–Micro Narrative of Italian Exports," Italian Economic Journal: A Continuation of Rivista Italiana degli Economisti and Giornale degli Economisti, Springer;Società Italiana degli Economisti (Italian Economic Association), vol. 4(1), pages 1-31, March.
    2. Eivind Lekve Bjelle & Johannes Többen & Konstantin Stadler & Thomas Kastner & Michaela C. Theurl & Karl-Heinz Erb & Kjartan-Steen Olsen & Kirsten S. Wiebe & Richard Wood, 2020. "Adding country resolution to EXIOBASE: impacts on land use embodied in trade," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 9(1), pages 1-25, December.
    3. Cyrielle Gaglio & Sarah Guillou, 2018. "Le tissu productif numérique en France," Sciences Po publications info:hdl:2441/19151plnj79, Sciences Po.
    4. Aldy Darwili & Enno Schröder, 2023. "On the Interpretation and Measurement of Technology-Adjusted Emissions Embodied in Trade," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 84(1), pages 65-98, January.
    5. Bailey, Michael & Gupta, Abhinav & Hillenbrand, Sebastian & Kuchler, Theresa & Richmond, Robert & Stroebel, Johannes, 2021. "International trade and social connectedness," Journal of International Economics, Elsevier, vol. 129(C).
    6. J. Verschuur & E. E. Koks & J. W. Hall, 2022. "Ports’ criticality in international trade and global supply-chains," Nature Communications, Nature, vol. 13(1), pages 1-13, December.
    7. Hinz, Julian & Monastyrenko, Evgenii, 2022. "Bearing the cost of politics: Consumer prices and welfare in Russia," Journal of International Economics, Elsevier, vol. 137(C).
    8. Carmine Ornaghi & Ilke Van Beveren & Stijn Vanormelingen, 2021. "The impact of service and goods offshoring on employment: Firm‐level evidence," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 54(2), pages 677-711, May.
    9. Michael Peneder & Christian Rammer, 2018. "Measuring Competitiveness," WIFO Studies, WIFO, number 60838, April.
    10. Oliver Reiter & Robert Stehrer, 2023. "Assessing the importance of risky products in international trade and global value chains," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 50(1), pages 7-33, February.
    11. repec:hal:spmain:info:hdl:2441/19151plnj79csrgmrv585qvrvn is not listed on IDEAS
    12. Camatte, Hadrien & Daudin, Guillaume & Faubert, Violaine & Rifflart, Christine, 2023. "Estimating the elasticity of consumer prices to the exchange rate: An accounting approach," Journal of International Money and Finance, Elsevier, vol. 137(C).
    13. Peneder, Michael & Rammer, Christian (ed.), 2018. "Measuring Competitiveness," ZEW Expertises, ZEW - Leibniz Centre for European Economic Research, number 181906, September.
    14. Stefan Pahl & Marcel P. Timmer, 2019. "Patterns of vertical specialisation in trade: long-run evidence for 91 countries," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 155(3), pages 459-486, August.
    15. Mariya Aleksynska & Giovanni Peri, 2014. "Isolating the Network Effect of Immigrants on Trade," The World Economy, Wiley Blackwell, vol. 37(3), pages 434-455, March.
    16. Schulte, Patrick, 2015. "Does skill-biased technical change diffuse internationally?," ZEW Discussion Papers 15-088, ZEW - Leibniz Centre for European Economic Research.
    17. Chen, Natalie & Juvenal, Luciana, 2022. "Markups, quality, and trade costs," Journal of International Economics, Elsevier, vol. 137(C).
    18. Jan Fagerberg & Bengt-Åke Lundvall & Martin Srholec, 2018. "Global Value Chains, National Innovation Systems and Economic Development," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 30(3), pages 533-556, July.
    19. Felbermayr Gabriel & Steininger Marina, 2019. "Revisiting the Euro’s Trade Cost and Welfare Effects," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 239(5-6), pages 917-956, October.
    20. Jarreau, Joachim & Poncet, Sandra, 2012. "Export sophistication and economic growth: Evidence from China," Journal of Development Economics, Elsevier, vol. 97(2), pages 281-292.
    21. Ke Zhang & Xingwei Wang, 2021. "Pollution Haven Hypothesis of Global CO 2 , SO 2 , NO x —Evidence from 43 Economies and 56 Sectors," IJERPH, MDPI, vol. 18(12), pages 1-27, June.

    More about this item

    Keywords

    Imports; COVID-19; NAFTA; Economic Activity; Relationship Stickiness;
    All these keywords.

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:cir:circah:2020pe-34. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Webmaster (email available below). General contact details of provider: https://edirc.repec.org/data/ciranca.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.