Trade Integration

• Canada’s Experience with Trade Policy

  Staff Discussion Paper 2018-1 Karyne B. Charbonneau, Daniel de Munnik, Laura Murphy

  This paper compiles the contemporary view on three major Canadian-led trade policies that have marked Canada’s economic history since Confederation: the National Policy (1879), the Canada–US Agreement on Automotive Products (Auto Pact, 1965) and the Canada–US Free Trade Agreement (FTA, 1989, including its extension to the North American Free Trade Agreement, NAFTA, 1994).

  Content Type(s): Staff Research, Staff Discussion Papers Topic(s): International topics, Trade Integration JEL Code(s): F, F1, F13, N, N7, N71, N72

• Capital-Goods Imports and US Growth

  Staff Working Paper 2018-1 Michele Cavallo, Anthony Landry

  Capital-goods imports have become an increasing source of growth for the U.S. economy. To understand this phenomenon, we build a neoclassical growth model with international trade in capital goods in which agents face exogenous paths of total factor and investment-specific productivity measures.

  Content Type(s): Staff Research, Staff Working Papers Topic(s): Productivity, Trade Integration JEL Code(s): E, E2, F, F2, F4, O, O3, O4

• September 18, 2017 How Canada’s International Trade is Changing with the Times

  Remarks Timothy Lane Saskatoon Regional Economic Development Authority Saskatoon, Saskatchewan

  Deputy Governor Timothy Lane discusses the changing nature of international trade and the factors that are propelling it.

  Content Type(s): Press, Speeches Topic(s): Business fluctuations and cycles, International topics, Productivity, Recent economic and financial developments, Trade Integration

• The Welfare Effects of Protection: A General Equilibrium Analysis of Canada’s National Policy

  Staff Working Paper 2017-18 Patrick Alexander, Ian Keay

  In this paper, we study the impact of Canada’s adoption of protectionist trade policy in 1879 on Canadian welfare. Under the National Policy the Canadian average weighted tariff increased from 14% to 21%. The conventional view is that this was a distortionary policy that negatively affected Canadian welfare.

  Content Type(s): Staff Research, Staff Working Papers Topic(s): Economic models, International topics, Trade Integration JEL Code(s): F, F1, F13, F14, F4, F42, F6, F60, N, N7, N71

• May 4, 2017 Canada and Mexico: Common Issues in Uncommon Times

  Remarks Stephen S. Poloz CanCham México and Club de Industriales Mexico City, Mexico

  Governor Stephen S. Poloz discusses how shared economic traits leave Canada and Mexico well placed to face global challenges.

  Content Type(s): Press, Speeches Topic(s): Inflation targets, Interest rates, Monetary Policy, Recent economic and financial developments, Trade Integration, Uncertainty and monetary policy

• Vertical Specialization and Gains from Trade

  Staff Working Paper 2017-17 Patrick Alexander

  Multi-stage production is widely recognized as an important feature of the modern global economy. This feature has been incorporated into many state-of-the-art quantitative trade models, and has been shown to deliver significant additional gains from international trade.

  Content Type(s): Staff Research, Staff Working Papers Topic(s): Economic models, International topics, Trade Integration JEL Code(s): F, F1, F11, F14, F6, F60

• Accounting for Real Exchange Rates Using Micro‐Data

  Staff Working Paper 2017-12 Mario J. Crucini, Anthony Landry

  The classical dichotomy predicts that all of the time-series variance in the aggregate real exchange rate is accounted for by non-traded goods in the consumer price index (CPI) basket because traded goods obey the Law of One Price. In stark contrast, Engel (1999) claimed the opposite: that traded goods accounted for all of the variance.

  Content Type(s): Staff Research, Staff Working Papers Topic(s): Exchange rates, International financial markets, Trade Integration JEL Code(s): F, F3

• March 28, 2017 Canada at 150: It Takes a World to Raise a Nation

  Remarks Stephen S. Poloz 50th Anniversary of Durham College Oshawa, Ontario

  Governor Stephen S. Poloz shows how Canada’s economic progress has been driven by its historic preference for openness to immigration, investment and trade.

  Content Type(s): Press, Speeches Topic(s): Exchange rate regimes, International financial markets, Productivity, Trade Integration

• Producer Heterogeneity, Value-Added, and International Trade

  Staff Working Paper 2016-54 Patrick Alexander

  Standard new trade models depict producers as heterogeneous in total factor productivity. In this paper, I adapt the Eaton and Kortum (2002) model of international trade to incorporate tradable intermediate goods and producer heterogeneity in value-added productivity.

  Content Type(s): Staff Research, Staff Working Papers Topic(s): Economic models, International topics, Productivity, Trade Integration JEL Code(s): F, F1, F11, F12, F14

• November 16, 2016 Follow the Money: A Canadian Perspective on Financial Globalization

  Remarks Timothy Lane Centre for International Governance Innovation (CIGI) Waterloo, Ontario

  Deputy Governor Timothy Lane discusses the benefits and challenges of international capital mobility.

  Content Type(s): Press, Speeches Topic(s): Balance of payments and components, Exchange rates, Financial markets, International financial markets, Market structure and pricing, Trade Integration