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Short-Term and Long-Term Margins of International Trade: Evidence from the Canada-Chile Free Trade Agreement
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Short-Term and Long-Term Margins of International Trade: Evidence from the Canada-Chile Free Trade Agreement

Author

Listed:
  • Zhiqiang Chen

    (Carleton University)

  • Marcel Cristian Voia

    (Carleton University)

Abstract

We investigate the impact of the Canada-Chile Free Trade Agreement (CCFTA) on Canadian exports to Chile, particularly the dynamic effects of the agreement on extensive and intensive margins of trade. Consistent with the literature, we find that the extensive margin effects occurred later than the intensive margin effects and became more prominent in the long-term. Surprisingly, the intensive margin effects died off in the long-term. A theoretical model is constructed to show that our results can arise in a standard setting of intra-industry trade.
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Suggested Citation

  • Zhiqiang Chen & Marcel Cristian Voia, 2018. "Short-Term and Long-Term Margins of International Trade: Evidence from the Canada-Chile Free Trade Agreement," Post-Print hal-03554381, HAL.
    • Handle: RePEc:hal:journl:hal-03554381
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    Cited by:

    1. Mumtaz Ahmad & Imtiaz Ahmad, 2024. "New products or more of the old? Estimating the impact of Canadian free trade agreements on exports," Economia e Politica Industriale: Journal of Industrial and Business Economics, Springer;Associazione Amici di Economia e Politica Industriale, vol. 51(2), pages 481-516, June.

    More about this item

    JEL classification:

    • F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations

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