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- Articles and reports: 11-633-X2019004Description:
This paper shows how to estimate the effect of the Canada-United States border on non-energy goods trade at a sub-provincial/state level using Statistics Canada’s Surface Transportation File (STF), augmented with United States domestic trade data. It uses a gravity model framework to compare cross-border to domestic trade flows among 201 Canadian and United States regions in year 2012. It shows that some 25 years after the Canada-United States Free Trade Agreement (the North American Free Trade Agreement’s predecessor) was ratified, the cost of trading goods across the border still amounts to a 30% tariff on bilateral trade between Canadian and United States regions. The paper also demonstrates how these estimates can be used along with general equilibrium Poisson pseudo maximum likelihood (GEPPML) methods to describe the effect of changing border costs on North American trade patterns and regional welfare.
Release date: 2019-09-24 - Articles and reports: 11-626-X2019010Description:
This article in the Economic Insights series examines the impact of the Canada–United States border and the potential effects of changing the trade costs it imposes between and within the two countries at a fine geographical scale. The analysis is based on a structural gravity model of trade estimated using Statistics Canada’s Surface Transportation File and the United States Census Bureau’s Commodity Flow Survey. The model estimates the general equilibrium effects that Canada–United States border costs have on trade patterns and welfare, which can be illustrated at a fine regional scale. Maps are used to depict how increases and decreases in border frictions affect not only Canada–United States trade, but also domestic trade flows. The maps show considerable regional variation in both types of trade when conditions at the border change.
Release date: 2019-06-12 - Articles and reports: 11F0019M2016386Description:
This paper asks whether research and development (R&D) drives the level of competitiveness required to successfully enter export markets and whether, in turn, participation in export markets increases R&D expenditures. Canadian non-exporters that subsequently entered export markets in the first decade of the 2000s are found to be not only larger and more productive, as has been reported for previous decades, but also more likely to have invested in R&D. Both extramural R&D expenditures (purchased from domestic and foreign suppliers) and intramural R&D expenditures (performed in-house) increase the ability of firms to penetrate export markets. Exporting also has a significant impact on subsequent R&D expenditures; exporters are more likely to start investing in R&D. Firms that began exporting increased the intensity of extramural R&D expenditures in the year in which exporting occurred.
Release date: 2016-11-28
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Articles and reports (3)
Articles and reports (3) ((3 results))
- Articles and reports: 11-633-X2019004Description:
This paper shows how to estimate the effect of the Canada-United States border on non-energy goods trade at a sub-provincial/state level using Statistics Canada’s Surface Transportation File (STF), augmented with United States domestic trade data. It uses a gravity model framework to compare cross-border to domestic trade flows among 201 Canadian and United States regions in year 2012. It shows that some 25 years after the Canada-United States Free Trade Agreement (the North American Free Trade Agreement’s predecessor) was ratified, the cost of trading goods across the border still amounts to a 30% tariff on bilateral trade between Canadian and United States regions. The paper also demonstrates how these estimates can be used along with general equilibrium Poisson pseudo maximum likelihood (GEPPML) methods to describe the effect of changing border costs on North American trade patterns and regional welfare.
Release date: 2019-09-24 - Articles and reports: 11-626-X2019010Description:
This article in the Economic Insights series examines the impact of the Canada–United States border and the potential effects of changing the trade costs it imposes between and within the two countries at a fine geographical scale. The analysis is based on a structural gravity model of trade estimated using Statistics Canada’s Surface Transportation File and the United States Census Bureau’s Commodity Flow Survey. The model estimates the general equilibrium effects that Canada–United States border costs have on trade patterns and welfare, which can be illustrated at a fine regional scale. Maps are used to depict how increases and decreases in border frictions affect not only Canada–United States trade, but also domestic trade flows. The maps show considerable regional variation in both types of trade when conditions at the border change.
Release date: 2019-06-12 - Articles and reports: 11F0019M2016386Description:
This paper asks whether research and development (R&D) drives the level of competitiveness required to successfully enter export markets and whether, in turn, participation in export markets increases R&D expenditures. Canadian non-exporters that subsequently entered export markets in the first decade of the 2000s are found to be not only larger and more productive, as has been reported for previous decades, but also more likely to have invested in R&D. Both extramural R&D expenditures (purchased from domestic and foreign suppliers) and intramural R&D expenditures (performed in-house) increase the ability of firms to penetrate export markets. Exporting also has a significant impact on subsequent R&D expenditures; exporters are more likely to start investing in R&D. Firms that began exporting increased the intensity of extramural R&D expenditures in the year in which exporting occurred.
Release date: 2016-11-28
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