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Summary Of: Tariff Reduction and Employment in Canadian Manufacturing, 1988-1994

  • Larochelle-Cote, Sebastien
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    This article summarizes findings from the research paper entitled: Tariff Reduction and Employment in Canadian Manufacturing, 1988-1994. At the end of the 1980s, Canada and the United States reached an agreement to phase out import tariffs over a 10-year period beginning January 1st, 1989. This tariff reduction scheme was a major centre-piece of the Canada-U.S. Free Trade Agreement (FTA). The implementation of the FTA was followed by a recession, characterized by massive job cuts in manufacturing industries, which led to suggestions that employment losses were related to the reduction of trade barriers. Research on firm output and survival (Gu, Sawchuk and Whewell, 2003; Baggs, 2004) suggests the impact of tariff changes was different across industries and across firms within industries. Using firm-level data, this study investigates the impact of reduced Canadian and U.S. tariffs on Canadian manufacturing employment. The study also asks whether the impact was heterogeneous across firms with various productivity and leverage characteristics.

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    File URL: http://www5.statcan.gc.ca/olc-cel/olc.action?ObjId=11F0019M2005259&ObjType=46&lang=en&limit=0
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    Paper provided by Statistics Canada, Analytical Studies Branch in its series Analytical Studies Branch Research Paper Series with number 2005259e.

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    Date of creation: 22 Jun 2005
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    Handle: RePEc:stc:stcp3e:2005259e
    Contact details of provider: Postal: Tunney's Pasture, Ottawa, Ontario, K1A 0T6
    Web page: http://www.statcan.gc.ca

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    1. James Brander, 1980. "Intra-Industry Trade in Identical Commodities," Working Papers 380, Queen's University, Department of Economics.
    2. Daniel Trefler, 2004. "The Long and Short of the Canada-U. S. Free Trade Agreement," American Economic Review, American Economic Association, vol. 94(4), pages 870-895, September.
    3. Larochelle-Cote, Sebastien & Heisz, Andrew, 2004. "Corporate Financial Leverage in Canadian Manufacturing: Consequences for Employment and Inventories," Analytical Studies Branch Research Paper Series 2004217e, Statistics Canada, Analytical Studies Branch.
    4. Melitz, Marc J, 2002. "The Impact of Trade on Intra-Industry Reallocations and Aggregate Industry Productivity," CEPR Discussion Papers 3381, C.E.P.R. Discussion Papers.
    5. Eugene Beaulieu, 2000. "The Canada-U.S. Free Trade Agreement and labour market adjustment in Canada," Canadian Journal of Economics, Canadian Economics Association, vol. 33(2), pages 540-563, May.
    6. Noel Gaston & Daniel Trefler, 1997. "The Labour Market Consequences of the Canada-U.S. Free Trade Agreement," Canadian Journal of Economics, Canadian Economics Association, vol. 30(1), pages 18-41, February.
    7. repec:rus:hseeco:122439 is not listed on IDEAS
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