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Tariff Structure, Trade Expansion and Canadian Protectionism from 1870-1910

  • Jevan Cherniwchan

    (University of Calgary)

  • Eugene Beaulieu

    (University of Calgary)

'We employ the Anderson-Neary Trade Restrictiveness Index (TRI) to examine Canadian trade policy during the first wave of globalization (1870-1913). Our analysis is the first to examine two important features of this period using the TRI: 1) the shift to protectionist trade policies, and 2) the large expansion in the volume and variety of goods traded. Using customs data on imports at the article level, we show that Canadian trade policy during this period was at least 11% more restrictive than previously understood. We compute the first estimates of the static welfare losses associated with tariff policy at this time to be 0.7-1.5% of GDP. Moreover, we show how trade expansion along the extensive margin affects the restrictiveness and welfare cost associated with a given trade policy.'

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File URL: http://econ.ucalgary.ca/sites/econ.ucalgary.ca.manageprofile/files/unitis/publications/162-46557/Beaulieu_Cherniwchan_Canadian_Trade_Policy_May_2011.pdf
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Paper provided by Department of Economics, University of Calgary in its series Working Papers with number 2011-08.

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Date of creation: 31 Jan 2011
Date of revision: 31 Jan 2011
Handle: RePEc:clg:wpaper:2011-08
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  1. Hiau Looi Kee & Alessandro Nicita & Marcelo Olarreaga, 2008. "Import Demand Elasticities and Trade Distortions," The Review of Economics and Statistics, MIT Press, vol. 90(4), pages 666-682, November.
  2. Sibylle H. Lehmann & Kevin H. O'Rourke, 2008. "The Structure of Protection and Growth in the Late 19th Century," NBER Working Papers 14493, National Bureau of Economic Research, Inc.
  3. O'Rourke, Kevin H., 1997. "Measuring protection: a cautionary tale," Journal of Development Economics, Elsevier, vol. 53(1), pages 169-183, June.
  4. Peter Lloyd & Donald MacLaren, 2010. "Partial- and General-Equilibrium Measures of Trade Restrictiveness," Review of International Economics, Wiley Blackwell, vol. 18(5), pages 1044-1057, November.
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