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A Panel Cointegration Analysis of the Canadian Trade Balance

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  • Sami Khedhiri

Abstract

This paper studies Canada international trade flows with its major trading partners. We examine bilateral trade flows between Canada and the US and we use panel cointegration methodology to estimate the import and export elasticities and we show that the Marshall-Lerner condition does hold. We also find evidence of cointegration relationship between Canadian export and import flows which suggests that the occurring cyclical trade deficits are sustainable in the long term.

Suggested Citation

  • Sami Khedhiri, 2013. "A Panel Cointegration Analysis of the Canadian Trade Balance," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 13(2), pages 93-100.
    • Handle: RePEc:eaa:aeinde:v:13:y:2013:i:2_7
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    References listed on IDEAS

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