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Canada’S Trade Relations With China


  • Islam, Sadequl



This paper explores trade relations between Canada and China which differ considerably in factor endowments. It focuses on Canada’s export- and import concentration and intra-industry trade involving China. The findings show that Canada’s exports to China are far more concentrated compared to Canada’s imports from China. The evidence shows that the degree of concentration of Canada’s exports to China has declined. The paper finds that intra-industry trade involving China and Canada is higher for high-tech products, than fo all products. Furthermore, the paper shows that Canada’s trade deficit with China in high-tech products has widened in recent years.

Suggested Citation

  • Islam, Sadequl, 2007. "Canada’S Trade Relations With China," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 7(2), pages 79-86.
  • Handle: RePEc:eaa:aeinde:v:7:y:2007:i:2_6

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    References listed on IDEAS

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    5. Gagnon, Joseph E., 1993. "Exchange rate variability and the level of international trade," Journal of International Economics, Elsevier, vol. 34(3-4), pages 269-287, May.
    6. Giovanni Dell'Ariccia, 1999. "Exchange Rate Fluctuations and Trade Flows: Evidence from the European Union," IMF Staff Papers, Palgrave Macmillan, vol. 46(3), pages 1-5.
    7. Grobar, Lisa Morris, 1993. "The effect of real exchange rate uncertainty on LDC manufactured exports," Journal of Development Economics, Elsevier, vol. 41(2), pages 367-376, August.
    8. Broll, Udo, 1994. "Foreign Production and Forward Markets," Australian Economic Papers, Wiley Blackwell, vol. 33(62), pages 1-6, June.
    9. Mckenzie, Michael D., 1998. "The impact of exchange rate volatility on Australian trade flows," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 8(1), pages 21-38, January.
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    11. Padma Gotur, 1985. "Effects of Exchange Rate Volatility on Trade: Some Further Evidence (Effets de l'instabilité des taux de change sur le commerce mondial: nouvelles constatations) (Efectos de la inestabilidad de los t," IMF Staff Papers, Palgrave Macmillan, vol. 32(3), pages 475-512, September.
    12. Paul De Grauwe, 1988. "Exchange Rate Variability and the Slowdown in Growth of International Trade," IMF Staff Papers, Palgrave Macmillan, vol. 35(1), pages 63-84, March.
    13. Franke, Gunter, 1991. "Exchange rate volatility and international trading strategy," Journal of International Money and Finance, Elsevier, vol. 10(2), pages 292-307, June.
    14. Kroner, Kenneth F. & Lastrapes, William D., 1993. "The impact of exchange rate volatility on international trade: Reduced form estimates using the GARCH-in-mean model," Journal of International Money and Finance, Elsevier, vol. 12(3), pages 298-318, June.
    15. McKenzie, Michael D. & Brooks, Robert D., 1997. "The impact of exchange rate volatility on German-US trade flows," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 7(1), pages 73-87, April.
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    Cited by:

    1. Su Fen & Ehsan Latif, 2014. "Bilateral trade between China and Canada: trends, patterns, and comparisons," Asian-Pacific Economic Literature, Asia Pacific School of Economics and Government, The Australian National University, vol. 28(2), pages 77-87, November.

    More about this item


    Concentration; intra-industry trade; high-tech products; factor-endowments; product-varieties;

    JEL classification:

    • F1 - International Economics - - Trade


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