Premium
Libéralisation du commerce et dynamique de la productivité: résultats pour le Canada.
Author(s) -
Lileeva Alla
Publication year - 2008
Publication title -
canadian journal of economics/revue canadienne d'économique
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.773
H-Index - 69
eISSN - 1540-5982
pISSN - 0008-4085
DOI - 10.1111/j.1540-5982.2008.00467.x
Subject(s) - tariff , productivity , international economics , economics , free trade , international trade , liberalization , market access , business , agriculture , macroeconomics , market economy , ecology , biology
. The paper investigates the productivity effects of the Canada‐U.S. Free Trade Agreement on Canadian manufacturing. It finds that Canadian tariff cuts increased exit rates among moderately productive non‐exporting plants. This led to the reallocation of market share towards highly productive plants, which explains the aggregate productivity gains observed when Canadian tariffs were reduced. The U.S. tariff cuts led to the within‐plant productivity gains in exporters and, especially, new entrants into the export market. Any lack of output responses and labour‐shedding as a consequence of the FTA was experienced by non‐exporting plants, while exporters captured the gains from the FTA.