Mechanisms through which the Canada–United States Free Trade Agreement increased Canadian manufacturing productivity
This table displays the results of Mechanisms through which the Canada–United States Free Trade Agreement increased Canadian manufacturing productivity. The information is grouped by Growth impact and Relative contribution, calculated using percent units of measure (appearing as column headers).
Between plants (selection and reallocation)
Growth of exporters (U.S. tariff cuts)
Contraction and exit of least-productive plants (Canadian tariff cuts)
New exporters invest in raising productivity
Existing exporters invest in raising productivity
Improved access to U.S. intermediate inputs
Source: M.J. Melitz and D. Trefler, 2012, “Gains from trade when firms matter,” Journal of Economic Perspectives 26 (2): 91–118.