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Product Varieties, Extensive and Intensive Margins of Trade: Evidence From Canada


  • Sadequl ISLAM


Using disaggregated data at the HS ten-digit level, this paper computes Canada’s intensive and extensive margins in the U.S. market with reference to the Rest of the World, the European Union, China, and Japan. The empirical findings for the 1992-2012 period show that Canada’s intensive margin declined with reference to the Rest of the World, the European Union, and China. The evidence also demonstrates that percentage changes in the intensive margin dominate percentage changes in Canada’s relative market share in the United States, especially during the Great Recession. The paper also examines export varieties from Canada and selected countries.

Suggested Citation

  • Sadequl ISLAM, 2014. "Product Varieties, Extensive and Intensive Margins of Trade: Evidence From Canada," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 14(2).
  • Handle: RePEc:eaa:aeinde:v:14:y:2014:i:2_7

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    References listed on IDEAS

    1. Jean Imbs & Romain Wacziarg, 2003. "Stages of Diversification," American Economic Review, American Economic Association, vol. 93(1), pages 63-86, March.
    2. Marc J. Melitz, 2003. "The Impact of Trade on Intra-Industry Reallocations and Aggregate Industry Productivity," Econometrica, Econometric Society, vol. 71(6), pages 1695-1725, November.
    3. John R. Baldwin & Wulong Gu, 2004. "Trade Liberalization: Export-market Participation, Productivity Growth, and Innovation," Oxford Review of Economic Policy, Oxford University Press, vol. 20(3), pages 372-392, Autumn.
    4. Hillberry, Russell H. & McDaniel, Christine A., 2002. "A Decomposition of North American Trade Growth since NAFTA," Working Papers 15866, United States International Trade Commission, Office of Economics.
    5. David Hummels & Peter J. Klenow, 2005. "The Variety and Quality of a Nation's Exports," American Economic Review, American Economic Association, vol. 95(3), pages 704-723, June.
    6. Krugman, Paul R., 1979. "Increasing returns, monopolistic competition, and international trade," Journal of International Economics, Elsevier, vol. 9(4), pages 469-479, November.
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    More about this item


    ntensive margin; extensive margin; export varietie;

    JEL classification:

    • F1 - International Economics - - Trade


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