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THE EFFECTS OF THE 1996 U.S.‐CANADA SOFTWOOD LUMBER AGREEMENT ON THE INDUSTRIAL USERS OF LUMBER: AN EVENT STUDY
Author(s) -
MALHOTRA NISHA,
GULATI SUMEET
Publication year - 2010
Publication title -
contemporary economic policy
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.454
H-Index - 49
eISSN - 1465-7287
pISSN - 1074-3529
DOI - 10.1111/j.1465-7287.2009.00177.x
Subject(s) - softwood , stock (firearms) , event study , stock price , economics , agricultural economics , business , pulp and paper industry , engineering , geography , mechanical engineering , paleontology , context (archaeology) , archaeology , series (stratigraphy) , biology
In this article, we analyze whether the Softwood Lumber Agreement between the United States and Canada imposed significant economic costs on industries that use softwood lumber in the United States. To ascertain this impact, we use an event study. Our event study analyzes variations in the stock prices of lumber‐using firms listed at the major stock markets in the United States. We find that the news of events leading to the Softwood Lumber Agreement had significant negative impacts on the stock prices of industries using softwood lumber. The average reduction of stock prices for our sample of firms was approximately 5.42% over all the events considered. (JEL F13, F23)