The Canada-United States bilateral import demand functions: gradual switching in long-run relationships
By estimating long-run relationships in bilateral import functions, the effects of the Canada-US Free Trade Agreement is analysed. We also incorporate the gradual switching model into the import function to capture the phased tariff reductions. The result shows that the free trade agreement made both countries sensitive to domestic and foreign prices and insensitive to the domestic income.
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Volume (Year): 9 (2002)
Issue (Month): 9 ()
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