Foreign Direct Investment Liberalization Between Canada and the USA: A CGE Investigation

Marcel Mérette (), Evangelia Papadaki (), Jorge Hernandez () and Yu Lan ()

Atlantic Economic Journal, 2008, vol. 36, issue 2, 195-209

Abstract: In this paper, we develop a computable general equilibrium (CGE) model to shed quantitative light on the implications of a scenario of deeper economic integration between Canada and the United States, where the barriers for foreign direct investment are preferentially eliminated. Our model distinguishes between the activities of domestic and foreign-owned firms at the microeconomic level, both in terms of demand and production characteristics. Overall our findings suggest that further investment liberalization between the two countries will accelerate the shaping of Canada’s industrial structure, as manifested by recent trends. Copyright International Atlantic Economic Society 2008

Keywords: FDI; Free trade; Canada–USA; CGE; F10; O50 (search for similar items in EconPapers)
Date: 2008
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DOI: 10.1007/s11293-008-9108-z

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