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  • Articles and reports: 65-507-M2005004
    Geography: Canada
    Description:

    Foreign control of a country's economic assets is of great interest to industry and policy makers alike. In 2002, foreign controlled exporting establishments operating in Canada represented about 10% of the total number of exporting establishments on Statistics Canada's Exporter Register. Total exports by those (foreign controlled) establishments in 2002 was in the amount of $155 billion - about half of the total exports in that year. It is contended that the lowering of barriers to trade with the U.S. has made it easier, not only for Canadian exporters to do business and invest in the U.S., but also for foreign enterprises to establish a physical presence in Canada in order to gain better access to the lucrative North American market. The paper examines to what extent the above contention is valid. The paper also examines the differences between industries, variation between countries, the diversity of export destinations and foreign control by province.

    Release date: 2005-10-03

  • Articles and reports: 75-001-X200510613144
    Geography: Canada
    Description:

    The G8 countries have only 13% of the world's population, but they account for 46% of the global economy. Despite being the smallest member of the group, Canada's GDP per capita puts it near the top of the economic ranking. This article presents selected indicators from various sources to describe how Canada compares with the other members of the G8, highlighting changes since the early 1990s.

    Release date: 2005-09-21

  • Articles and reports: 65-507-M2005003
    Geography: Canada
    Description:

    Trade statistics produced by one country will frequently differ from those produced by its trading partner(s) reflecting conceptual, definitional and reporting differences of the countries involved. This is evident with Canadian and Chinese merchandise trade numbers. Reconciled data show that Canada had a smaller trade deficit with China than official published Canadian numbers, while China had a larger surplus with Canada than official published Chinese statistics.

    This paper examines the differences in trade statistics between the two countries and provides estimates to better reflect the actual trade in 2002 and 2003.

    Release date: 2005-08-16

  • Articles and reports: 11F0019M2005256
    Geography: Canada
    Description:

    We investigate whether trade liberalization affects profitability and financial leverage, using Canadian data from the period following implementation of the Canada-U.S. Free Trade Agreement. We find that falling domestic tariffs are associated with declining profits and increasing leverage for import-competing firms, while falling foreign tariffs are associated with increasing profits and decreasing leverage for firms in export-oriented industries. This pattern is consistent with the "pecking order" theory of capital structure.

    Release date: 2005-06-22

  • Articles and reports: 11F0019M2005257
    Geography: Canada
    Description:

    This article summarizes findings from the research paper entitled: Trade liberalization, profitability, and financial leverage. Changes in international trade policy may influence financial leverage, the relative importance of debt as opposed to equity in financing the firm, expressed by a debt-to-asset ratio. The primary objective of this paper is to investigate empirically whether trade liberalization has an impact on leverage. The second is to estimate the effect of trade liberalization on profitability. Changes in trade policy are a major part of the international business environment, and our theoretical formulation suggests that trade liberalization influences leverage largely through its effect on profits. Therefore, testing the link between liberalization and profits is a central test of our overall theoretical structure. The paper is divided into the following sections: four testable hypotheses regarding the possible effect of trade liberalization on profits and leverage; a description of the data set; empirical results and analysis; and concluding remarks.

    Release date: 2005-06-22

  • Articles and reports: 11F0019M2005258
    Geography: Canada
    Description:

    This paper uses firm-level data from the T2/LEAP to investigate whether the link between tariff changes and employment differed across firms with various productivity and leverage characteristics over the period 1988 to 1994. The results suggest that the combined effect of domestic and U.S. tariff reductions on employment was typically small, but that losses were significantly larger for firms which were less productive. For instance, firms with average productivity in 1988 responded to tariff changes by cutting employment by only 3.6% over the period 1988 to 1994, while lower productivity firms typically shed 15.1% of their workforce over the same period. This paper also indicates that firms which were more heavily in debt downsized more in response to declining domestic tariffs, suggesting that financial constrains became more binding when tariff cuts were implemented. These results suggest that firms with high productivity and low leverage were less likely than others to feel the impact of declining U.S. and domestic tariffs.

    Release date: 2005-06-22

  • Articles and reports: 11F0019M2005259
    Geography: Canada
    Description:

    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.

    Release date: 2005-06-22

  • Articles and reports: 65-507-M2005002
    Description:

    The paper examines the data for the period from 1980 to 2003 on machinery and transport equipment, identifies some key trends in the data and explains those trends in light of major economic events of the last two decades.

    Release date: 2005-06-21

  • Articles and reports: 11-010-X20050068037
    Geography: Canada
    Description:

    Trade with China continued to grow rapidly last year, with exports outstripping imports thanks to our natural resources. Some new patterns emerged, notably imports of auto parts and the first significant export of energy products. Despite soaring trade flows, direct investment remains low in both directions.

    Release date: 2005-06-16

  • Articles and reports: 11-010-X20050057894
    Geography: Canada
    Description: The share of resources in our value-added exports is greater than in gross exports, because they use fewer imported inputs than manufactured goods.
    Release date: 2005-05-12
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Articles and reports (16)

Articles and reports (16) (0 to 10 of 16 results)

  • Articles and reports: 65-507-M2005004
    Geography: Canada
    Description:

    Foreign control of a country's economic assets is of great interest to industry and policy makers alike. In 2002, foreign controlled exporting establishments operating in Canada represented about 10% of the total number of exporting establishments on Statistics Canada's Exporter Register. Total exports by those (foreign controlled) establishments in 2002 was in the amount of $155 billion - about half of the total exports in that year. It is contended that the lowering of barriers to trade with the U.S. has made it easier, not only for Canadian exporters to do business and invest in the U.S., but also for foreign enterprises to establish a physical presence in Canada in order to gain better access to the lucrative North American market. The paper examines to what extent the above contention is valid. The paper also examines the differences between industries, variation between countries, the diversity of export destinations and foreign control by province.

    Release date: 2005-10-03

  • Articles and reports: 75-001-X200510613144
    Geography: Canada
    Description:

    The G8 countries have only 13% of the world's population, but they account for 46% of the global economy. Despite being the smallest member of the group, Canada's GDP per capita puts it near the top of the economic ranking. This article presents selected indicators from various sources to describe how Canada compares with the other members of the G8, highlighting changes since the early 1990s.

    Release date: 2005-09-21

  • Articles and reports: 65-507-M2005003
    Geography: Canada
    Description:

    Trade statistics produced by one country will frequently differ from those produced by its trading partner(s) reflecting conceptual, definitional and reporting differences of the countries involved. This is evident with Canadian and Chinese merchandise trade numbers. Reconciled data show that Canada had a smaller trade deficit with China than official published Canadian numbers, while China had a larger surplus with Canada than official published Chinese statistics.

    This paper examines the differences in trade statistics between the two countries and provides estimates to better reflect the actual trade in 2002 and 2003.

    Release date: 2005-08-16

  • Articles and reports: 11F0019M2005256
    Geography: Canada
    Description:

    We investigate whether trade liberalization affects profitability and financial leverage, using Canadian data from the period following implementation of the Canada-U.S. Free Trade Agreement. We find that falling domestic tariffs are associated with declining profits and increasing leverage for import-competing firms, while falling foreign tariffs are associated with increasing profits and decreasing leverage for firms in export-oriented industries. This pattern is consistent with the "pecking order" theory of capital structure.

    Release date: 2005-06-22

  • Articles and reports: 11F0019M2005257
    Geography: Canada
    Description:

    This article summarizes findings from the research paper entitled: Trade liberalization, profitability, and financial leverage. Changes in international trade policy may influence financial leverage, the relative importance of debt as opposed to equity in financing the firm, expressed by a debt-to-asset ratio. The primary objective of this paper is to investigate empirically whether trade liberalization has an impact on leverage. The second is to estimate the effect of trade liberalization on profitability. Changes in trade policy are a major part of the international business environment, and our theoretical formulation suggests that trade liberalization influences leverage largely through its effect on profits. Therefore, testing the link between liberalization and profits is a central test of our overall theoretical structure. The paper is divided into the following sections: four testable hypotheses regarding the possible effect of trade liberalization on profits and leverage; a description of the data set; empirical results and analysis; and concluding remarks.

    Release date: 2005-06-22

  • Articles and reports: 11F0019M2005258
    Geography: Canada
    Description:

    This paper uses firm-level data from the T2/LEAP to investigate whether the link between tariff changes and employment differed across firms with various productivity and leverage characteristics over the period 1988 to 1994. The results suggest that the combined effect of domestic and U.S. tariff reductions on employment was typically small, but that losses were significantly larger for firms which were less productive. For instance, firms with average productivity in 1988 responded to tariff changes by cutting employment by only 3.6% over the period 1988 to 1994, while lower productivity firms typically shed 15.1% of their workforce over the same period. This paper also indicates that firms which were more heavily in debt downsized more in response to declining domestic tariffs, suggesting that financial constrains became more binding when tariff cuts were implemented. These results suggest that firms with high productivity and low leverage were less likely than others to feel the impact of declining U.S. and domestic tariffs.

    Release date: 2005-06-22

  • Articles and reports: 11F0019M2005259
    Geography: Canada
    Description:

    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.

    Release date: 2005-06-22

  • Articles and reports: 65-507-M2005002
    Description:

    The paper examines the data for the period from 1980 to 2003 on machinery and transport equipment, identifies some key trends in the data and explains those trends in light of major economic events of the last two decades.

    Release date: 2005-06-21

  • Articles and reports: 11-010-X20050068037
    Geography: Canada
    Description:

    Trade with China continued to grow rapidly last year, with exports outstripping imports thanks to our natural resources. Some new patterns emerged, notably imports of auto parts and the first significant export of energy products. Despite soaring trade flows, direct investment remains low in both directions.

    Release date: 2005-06-16

  • Articles and reports: 11-010-X20050057894
    Geography: Canada
    Description: The share of resources in our value-added exports is greater than in gross exports, because they use fewer imported inputs than manufactured goods.
    Release date: 2005-05-12
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