00000nam 2200000zi 4500 9.886482 CaOODSP 20221107171431 m o d f cr cn||||||||| 200428t20202020onca ob f000 0 eng d CaOODSP eng rda CaOODSP eng eng fre n-cn--- n-us--- y0y1 FB3-5/2020-10E-PDF Guo, Jinggang, author. Do protectionist trade policies integrate domestic markets? : evidence from the Canada-U.S. softwood lumber dispute / by Jinggang Guo and Craig M.T. Johnston. Ottawa, Ontario, Canada : Bank of Canada = Banque du Canada, 2020. ©2020 1 online resource (iii, 20 pages) : illustrations. text txt rdacontent computer c rdamedia online resource cr rdacarrier Staff working paper = Document de travail du personnel, 1701-9397 ; 2020-10 "Last updated: March 23, 2020." Includes bibliographical references (pages 19-20). "We consider the effects of protectionist trade policies on international and domestic market integration, using evidence from the long-standing softwood lumber trade dispute between Canada and the United States. The benefits of trade liberalization are widely acknowledged, including better home-to-foreign price transmission due to reduced tariffs and lower trade costs between countries. Yet in recent years we see efforts to protect specific domestic groups, including producers, through a revival of protectionist trade policies. Such policies could improve the home-to-home price transmission across domestic markets as consumers may seek lower-cost alternatives domestically. We investigate these ideas using a bi-variate three-regime threshold vector error-correction model (TVECM) to examine the spatial price transmission between Canadian and U.S. markets and within U.S. domestic markets. We do that by introducing a structural break at the start of an effective free trade period within our sample. The results suggest that duty-free treatment for imported Canadian softwood lumber substantially lowers the transaction costs between the two nations. Prices are more easily transmitted from the Canadian market to the U.S. at a higher speed, but the speed of price transmission in the reverse direction is not statistically significant. The U.S. domestic market experienced a higher speed of price adjustment across domestic regions prior to the free trade period, which provides evidence that protectionist policies lead to better domestic market integration"--Abstract, page ii. Includes abstracts in English and French. International economic integration. Softwood industry Canada. Softwood industry United States. Protectionism United States. Tariff on softwood United States. Intégration économique internationale. Bois tendres Industrie Canada. Bois tendres Industrie États-Unis. Protectionnisme États-Unis. Boits tendres Droits de douane États-Unis. Bank of Canada. Staff working paper (Bank of Canada) 2020-10. (CaOODSP)9.806221 PDF 778 KB https://publications.gc.ca/collections/collection_2020/banque-bank-canada/FB3-5-2020-10-eng.pdf