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Province specific impacts of the 2006 United States-Canada Softwood Lumber Agreement: A seemingly unrelated regression approach

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  • Parajuli, Rajan
  • Zhang, Daowei
  • Kosman, Keta

Abstract

In this paper, we evaluate effects of the 2006 U.S.-Canada Softwood Lumber Agreement (SLA 2006) in U.S. lumber imports from Canadian provinces. Based on monthly data from January 1988 to October 2015, we estimate a system of U.S. softwood lumber import equations by using Seemingly Unrelated Regression approach. The results reveal that SLA 2006 had a negative impact on softwood lumber shipments to the U.S. from British Columbia, Ontario, Quebec, and Saskatchewan, and no effect on those from SLA-exempted provinces. Thus, SLA 2006 did not provide an opportunity for trade diversion from SLA covered provinces to exempted provinces.

Suggested Citation

  • Parajuli, Rajan & Zhang, Daowei & Kosman, Keta, 2018. "Province specific impacts of the 2006 United States-Canada Softwood Lumber Agreement: A seemingly unrelated regression approach," Forest Policy and Economics, Elsevier, vol. 90(C), pages 1-6.
  • Handle: RePEc:eee:forpol:v:90:y:2018:i:c:p:1-6
    DOI: 10.1016/j.forpol.2017.12.010
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