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StatCan Blog: Trade costs, borders and economic integration

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Released: 2017-09-22

This month, the StatCan Blog turns over the writer's chair to one of the agency's researchers, Mark Brown, a chief in the Economic Analysis Division. His blog examines the impact of trade costs, such as marketing, transportation and regulatory requirements, on domestic and international trade in Canada.

Trade costs are important because they affect not only the price of goods, but also the location and investment decisions of firms. For example, a firm may choose to establish its operations in a region where production costs are low. Conversely, it may choose to save on transportation by locating some activities closer to different markets.

These factors have long been of concern, but they were often difficult to measure. It is only in more recent years that the agency has been making strides to address this data gap by measuring detailed trade flows and their associated costs.

With these new data, it is now possible to track trade flows from region to region, to map the connectedness of commerce across Canada, and to analyze in-depth the impact of trade costs on a firm's choice of location and investments.


The StatCan Blog post for September 2017, "Trade costs, borders and economic integration," is now available.

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