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Effects of global trade liberalization on softwood lumber markets

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  • Stephen Devadoss
  • Angel Aguiar

Abstract

This study develops a world spatial equilibrium softwood lumber model comprised of the major importing and exporting countries/regions to analyse the impacts of global trade reform on the world softwood lumber market. The results show that free trade leads to an increase in lumber trade, and Canadian producers and US consumers are the biggest beneficiaries. Trade liberalization improves the overall world welfare as world producer and consumer surpluses increase. The result highlights the importance of moving towards free trade in the global softwood lumber market.

Suggested Citation

  • Stephen Devadoss & Angel Aguiar, 2006. "Effects of global trade liberalization on softwood lumber markets," Applied Economics, Taylor & Francis Journals, vol. 38(20), pages 2351-2360.
  • Handle: RePEc:taf:applec:v:38:y:2006:i:20:p:2351-2360
    DOI: 10.1080/00036840500427619
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    References listed on IDEAS

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    1. Roy Boyd & Khosrow Doroodian & Saquib Abdul-Latif, 1993. "The Effects of Tariff Removals on the North American Lumber Trade," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 41(3), pages 311-328, November.
    2. Thomas L. Cox & Jonathan R. Coleman & Jean-Paul Chavas & Yong Zhu, 1999. "An Economic Analysis of the Effects on the World Dairy Sector of Extending Uruguay Round Agreement to 2005," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 47(5), pages 169-183, December.
    3. Stephen Fuller & Luis Fellin & Victoria Salin, 2003. "Effect of liberalized U.S.-Mexico rice trade: A spatial, multiproduct equilibrium analysis," Agribusiness, John Wiley & Sons, Ltd., vol. 19(1), pages 1-17.
    4. Spreen, Thomas H. & Brewster, Charlene & Brown, Mark G., 2003. "The Free Trade Area of the Americas and the Market for Processed Orange Products," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 35(1), pages 107-126, April.
    5. Antonio Gomez-Plana & Stephen Devadoss, 2004. "A spatial equilibrium analysis of trade policy reforms on the world wheat market," Applied Economics, Taylor & Francis Journals, vol. 36(15), pages 1643-1648.
    6. Ramon Guajardo & Homero Elizondo, 2003. "North American tomato market: a spatial equilibrium perspective," Applied Economics, Taylor & Francis Journals, vol. 35(3), pages 315-322.
    7. Yong Zhu & Thomas L. Cox & Jean-Paul Chavas, 1999. "An Economic Analysis of the Effects of the Uruguay Round Agreement and Full Trade Liberalization on the World Dairy Sector," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 47(5), pages 187-200, December.
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    Cited by:

    1. Devadoss, Stephen & Ridley, William, 2024. "Impacts of the Russian invasion of Ukraine on the global wheat market," World Development, Elsevier, vol. 173(C).
    2. Vorotnikova, Ekaterina & Devadoss, Stephen, 2016. "The Effects of Panama Canal Expansion on US Dairy Trade Flows: West, East, and Gulf District Regions," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 19(B), pages 1-20, August.

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