Short-Term and Long-Term Margins of International Trade: Evidence from the Canada-Chile Free Trade Agreement -forthcoming in Frontiers of Economics in China

Zhiqi Chen and Marcel Voia

No 18-01, Carleton Economic Papers from Carleton University, Department of Economics

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.

Keywords: Preferential Trade Agreements; Margins of International Trade, CanadaChile Trade, Nonparametric Decompositions, Regression Discontinuity (search for similar items in EconPapers)
JEL-codes: F12 F13 (search for similar items in EconPapers)
Pages: 23 pages
Date: 2018-01-15
New Economics Papers: this item is included in nep-int
References: Add references at CitEc
Citations:

Published: Carleton Economic Papers

Downloads: (external link)
http://www.carleton.ca/economics/wp-content/uploads/cep18-01.pdf

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:car:carecp:18-01

Ordering information: This working paper can be ordered from

Access Statistics for this paper

More papers in Carleton Economic Papers from Carleton University, Department of Economics C870 Loeb Building, 1125 Colonel By Drive, Ottawa Ontario, K1S 5B6 Canada.
Bibliographic data for series maintained by Court Lindsay ().