IDEAS home Printed from https://ideas.repec.org/a/ags/joaaec/45517.html

An Evaluation of Canadian and U.S. Policies of Log and Lumber Markets

Author

Listed:
  • Devadoss, Stephen

Abstract

The recent lumber trade war between Canada and the United States deals with Canadian stumpage policies, Canada’s log export controls, and U.S. retaliatory duty. This study determines the appropriate level of U.S. countervailing duty (CVD) by employing a vertically interrelated log–lumber model. The theoretical results show that the U.S. CVD can be greater (will be less) than the Canadian subsidy for a vertically related log–lumbermarket (for lumber market only). Empirical results support the theoretical findings in that the U.S. CVD for the log–lumber market (lumber market alone) is 1.55 (0.91) times the Canadian subsidy.

Suggested Citation

  • Devadoss, Stephen, 2008. "An Evaluation of Canadian and U.S. Policies of Log and Lumber Markets," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 40(01), pages 1-14, April.
    • Handle: RePEc:ags:joaaec:45517
    DOI: 10.22004/ag.econ.45517
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/45517/files/jaae-40-01-171.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.45517?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Giancarlo Moschini & Karl D. Meilke, 1992. "Production Subsidy and Countervailing Duties in Vertically Related Markets: The Hog-Pork Case Between Canada and the United States," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 74(4), pages 951-961.
    2. Jean-Thomas Bernard & Luc Bouthillier & Jérôme Catimel & Nancy Gélinas, 1997. "An Integrated Model of Québec-Ontario-U.S. Northeast Softwood Lumber Markets," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 79(3), pages 987-1000.
    3. Irwin, Douglas A., 2003. "The optimal tax on antebellum US cotton exports," Journal of International Economics, Elsevier, vol. 60(2), pages 275-291, August.
    4. Joseph P. Kalt, 1988. "The Political Economy of Protectionism: Tariffs and Retaliation in the Timber Industry," NBER Chapters, in: Trade Policy Issues and Empirical Analysis, pages 339-368, National Bureau of Economic Research, Inc.
    5. Harris, Ben & Devadoss, Stephen, 2005. "Why Did the Byrd Amendment Not Fly with the WTO? Technical Annex," Estey Centre Journal of International Law and Trade Policy, Estey Centre for Law and Economics in International Trade, vol. 6(2), pages 1-6.
    6. Robert E. Baldwin, 1988. "Trade Policy Issues and Empirical Analysis," NBER Books, National Bureau of Economic Research, Inc, number bald88-2, December.
    7. Roy Boyd & Kerry Krutilla, 1987. "The Welfare Impacts of U.S. Trade Restrictions against the Canadia n Softwood Lumber Industry: A Spatial Equilibrium Analysis," Canadian Journal of Economics, Canadian Economics Association, vol. 20(1), pages 17-35, February.
    8. Harris, Ben & Devadoss, Stephen, 2005. "Why did the Byrd Amendment Not Fly at the WTO?," Estey Centre Journal of International Law and Trade Policy, Estey Centre for Law and Economics in International Trade, vol. 6(2), pages 1-19.
    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. Zhai, Jun & Kuusela, Olli-Pekka, 2022. "Incidence of domestic subsidies vs. export taxes: An equilibrium displacement model of log and lumber markets in Oregon," Forest Policy and Economics, Elsevier, vol. 135(C).
    2. G. Cornelis van Kooten, 2014. "Is Free Trade the End All Be All? The Case of Log Exports," Working Papers 2014-01, University of Victoria, Department of Economics, Resource Economics and Policy Analysis Research Group.
    3. Parajuli, Rajan & Sarangi, Sudipta & Chang, Sun Joseph & Hill, R. Carter, 2016. "The United States-Canada softwood lumber trade: An actual versus optimal export tax," Forest Policy and Economics, Elsevier, vol. 73(C), pages 112-119.
    4. van Kooten, G. Cornelis, 2014. "Benefits and costs of impeding free trade: Revisiting British Columbia's restrictions on log exports," Journal of Forest Economics, Elsevier, vol. 20(4), pages 333-347.

    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. Zhe Chen & Zhongzhong Hu & Kai Li, 2021. "The spillover effect of trade policy along the value Chain: Evidence from China's rare earth‐related sectors," The World Economy, Wiley Blackwell, vol. 44(12), pages 3550-3582, December.
    2. Anne O. Krueger, 1990. "The Political Economy of American Protection in Theory and in Practice," NBER Working Papers 3544, National Bureau of Economic Research, Inc.
    3. Devadoss, Stephen, 2006. "Is There an End to U.S.-Canadian Softwood Lumber Disputes?," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 38(01), pages 1-17, April.
    4. Daowei Zhang & David Laband, 2005. "From Senators to the President: Solve the lumber problem or else," Public Choice, Springer, vol. 123(3), pages 393-410, June.
    5. Tanger, Shaun M. & Laband, David N., 2009. "An empirical analysis of bill co-sponsorship in the U.S. Senate: The Tree Act of 2007," Forest Policy and Economics, Elsevier, vol. 11(4), pages 260-265, July.
    6. Tybout, James R. & Westbrook, M. Daniel, 1995. "Trade liberalization and the dimensions of efficiency change in Mexican manufacturing industries," Journal of International Economics, Elsevier, vol. 39(1-2), pages 53-78, August.
    7. Mutuc, Maria Erlinda M. & Rejesus, Roderick M. & Pan, Suwen & Yorobe, Jose M., 2012. "Impact Assessment of Bt Corn Adoption in the Philippines," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 44(1), pages 117-135, February.
    8. Mohamed Ayadi & Wided Mattoussi, 2014. "From Productivity to Exporting or Vice Versa? Evidence from Tunisian Manufacturing Sector," Working Papers 852, Economic Research Forum, revised Nov 2014.
    9. Verónica Cañal-Fernández & Julio Tascón Fernández, 2018. "The long run impact of foreign direct investment, exports, imports and GDP: evidence for Spain from an ARDL approach," Working Papers 0128, European Historical Economics Society (EHES).
    10. James Proudman & Stephen Redding & Marco Bianchi, 1997. "Is International Openness associated with faster economic growth?," Bank of England working papers 63, Bank of England.
    11. Lord, Montague, 2015. "Regional Economic Integration in Central Asia and South Asia," MPRA Paper 66436, University Library of Munich, Germany.
    12. Schiff, Maurice, 1999. "Trade, migration, and welfare : the impact of social capital," Policy Research Working Paper Series 2044, The World Bank.
    13. Goh, Soo Khoon & Wong, Koi Nyen & Tham, Siew Yean, 2013. "Trade linkages of inward and outward FDI: Evidence from Malaysia," Economic Modelling, Elsevier, vol. 35(C), pages 224-230.
    14. Marie-Ange Véganzonès-Varoudakis & Arup Mitra & Chandan Sharma, 2012. "Are Reforms Productive? Explaining Productivity and Efficiency in the Indian Manufacturing," Post-Print hal-03058727, HAL.
    15. Ding, John Y., 1993. "Toward a Framework for Analyzing Multimarket Contact and Multinational Competition," Occasional Papers 233154, Regional Research Project NC-194: Organization and Performance of World Food Systems.
    16. Chakraborty, Debashis & Mukherjee, Jaydeep & Lee, Jaewook, 2016. "Do FDI Inflows influence Merchandise Exports? Causality Analysis on India over 1991-2016," MPRA Paper 74851, University Library of Munich, Germany.
    17. Berry, Steven & Levinsohn, James & Pakes, Ariel, 1995. "Automobile Prices in Market Equilibrium," Econometrica, Econometric Society, vol. 63(4), pages 841-890, July.
    18. Jaime de Melo & David Tarr, 2015. "VERs under imperfect competition and foreign direct investment: A case study of the US–Japan auto VER," World Scientific Book Chapters, in: Modeling Developing Countries' Policies in General Equilibrium, chapter 22, pages 461-483, World Scientific Publishing Co. Pte. Ltd..
    19. Chatti Rim, 2003. "A CGE Assessment of FTA Between Tunisia and the EU Under Oligopolistic Market Structures," Review of Middle East Economics and Finance, De Gruyter, vol. 1(2), pages 1-30, August.
    20. repec:idn:journl:v:1:y:2019:i:sp5:p:1-20 is not listed on IDEAS
    21. Måns Söderbom & Francis Teal, 2003. "Openness and human capital as sources of productivity growth: An empirical investigation," CSAE Working Paper Series 2003-06, Centre for the Study of African Economies, University of Oxford.

    More about this item

    Keywords

    ;
    ;
    ;
    ;

    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:ags:joaaec:45517. 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: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/saeaaea.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.