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Tariff Structure, Trade Expansion, and Canadian Protectionism, 1870-1910

Author

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  • Eugene Beaulieu
  • Jevan Cherniwchan

Abstract

Canada's trade policy at the end of the 19th century is commonly viewed as protectionist and extremely costly. In this paper, we employ the AndersonNeary Trade Restrictiveness Index to reexamine this view. Based on productlevel customs data, we show that Canadian trade policy between 1870 and 1910 was more restrictive than previously understood, but created smaller welfare losses than previously believed. These results are primarily driven by high tariffs on inelastic, noncompeting import goods. Although Canada's tariff structure becomes more restrictive over the period, our findings indicate it was not as protectionist or as costly as once thought.

Suggested Citation

  • Eugene Beaulieu & Jevan Cherniwchan, 2014. "Tariff Structure, Trade Expansion, and Canadian Protectionism, 1870-1910," Canadian Journal of Economics, Canadian Economics Association, vol. 47(1), pages 144-172, February.
    • Handle: RePEc:cje:issued:v:47:y:2014:i:1:p:144-172
    DOI: 10.1111/caje.12065
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    Citations

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    Cited by:

    1. Léo CHARLES, 2017. "A new empirical test of the infant-industry argument : the case of Switzerland protectionism during the 19th century," Cahiers du GREThA (2007-2019) 2017-11, Groupe de Recherche en Economie Théorique et Appliquée (GREThA).
    2. Gillian C. Hamilton & Ian Keay & Frank D. Lewis, 2017. "Contributions to Canadian economic history: The last 30 years," Canadian Journal of Economics, Canadian Economics Association, vol. 50(5), pages 1632-1657, December.
    3. Alexander, Patrick D. & Keay, Ian, 2019. "Responding to the First Era of Globalization: Canadian Trade Policy, 1870–1913," The Journal of Economic History, Cambridge University Press, vol. 79(3), pages 826-861, September.
    4. Alexander, Patrick D. & Keay, Ian, 2018. "A general equilibrium analysis of Canada’s national policy," Explorations in Economic History, Elsevier, vol. 68(C), pages 1-15.
    5. Luke H. Grayson & Brian D. Varian, 2023. "Economic Aspects of Australian Federation: Trade Restrictiveness and Welfare Effects in the Colonies and the Commonwealth, 1901-3," CEH Discussion Papers 01, Centre for Economic History, Research School of Economics, Australian National University.
    6. Jaworski, Taylor & Keay, Ian, 2022. "Globalization and the spread of industrialization in Canada, 1871–1891," Explorations in Economic History, Elsevier, vol. 86(C).
    7. Brian D. Varian & Luke H. Grayson, 2024. "Economic Aspects of Australian Federation: Trade Restrictiveness and Welfare Effects in the Colonies and the Commonwealth, 1900–3," The Economic Record, The Economic Society of Australia, vol. 100(328), pages 74-100, March.
    8. Patrick Alexander & Ian Keay, 2017. "The Welfare Effects of Protection: A General Equilibrium Analysis of Canada’s National Policy," Staff Working Papers 17-18, Bank of Canada.
    9. Ian Keay, 2019. "Protection for maturing industries: Evidence from Canadian trade patterns and trade policy, 18701913," Canadian Journal of Economics, Canadian Economics Association, vol. 52(4), pages 1464-1496, November.
    10. Michael Hinton & Thomas Barbiero, 2012. "Is Protection Good or Bad for Growth? Lessons from Canada's Cotton Textile Mills," Working Papers 036, Toronto Metropolitan University, Department of Economics, revised Oct 2012.
    11. Harris, Richard & Keay, Ian & Lewis, Frank, 2015. "Protecting infant industries: Canadian manufacturing and the national policy, 1870–1913," Explorations in Economic History, Elsevier, vol. 56(C), pages 15-31.

    More about this item

    JEL classification:

    • F1 - International Economics - - Trade
    • N7 - Economic History - - Economic History: Transport, International and Domestic Trade, Energy, and Other Services

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