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Deregulation and Regional Specialization: Evidence from Canadian Agriculture

Author

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  • Carter, Colin A.

    (Dept. of Agricultural and Resource Economics and Giannini Foundation of Agricultural Economics)

  • Ferguson, Shon

    (Research Institute of Industrial Economics (IFN))

Abstract

For about seventy years, the Canadian Wheat Board (CWB) was one of the world’s largest export “single desk” state traders in agriculture, until it was deregulated in 2012 and stripped of its marketing powers. One of the main crops controlled by the CWB was barley. We estimate the impact of the removal of the CWB’s single desk on the spatial pattern of malting barley production in Western Canada. We find that deregulation encouraged growers located closer to malt barley plants to increase production relative to growers located further from the plants. Additionally, malting barley production shifted to regions with more of a natural advantage arising from climatic conditions. This change in cropping patterns after deregulation can be explained by efficiency gains, combined with transportation and handling cost savings.

Suggested Citation

  • Carter, Colin A. & Ferguson, Shon, 2017. "Deregulation and Regional Specialization: Evidence from Canadian Agriculture," Working Paper Series 1185, Research Institute of Industrial Economics.
    • Handle: RePEc:hhs:iuiwop:1185
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    Cited by:

    1. Cardwell, Ryan & Ghazalian, Pascal L., 2022. "State-trading enterprises and productivity: Farm-level evidence from Canadian agriculture," 96th Annual Conference, April 4-6, 2022, K U Leuven, Belgium 321159, Agricultural Economics Society - AES.
    2. Colin A. Carter & Shon M. Ferguson, 2020. "State trading deregulation and prairie durum wheat production," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 68(1), pages 107-116, March.

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    More about this item

    Keywords

    tate trading; Deregulation; Agricultural regulation; Trade costs; Comparative advantage;
    All these keywords.

    JEL classification:

    • L43 - Industrial Organization - - Antitrust Issues and Policies - - - Legal Monopolies and Regulation or Deregulation
    • Q17 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agriculture in International Trade
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy; Animal Welfare Policy
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • R14 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Land Use Patterns

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