The Determinants and Persistence of Canadian Tariff Rates

Irene Henriques and Perry Sadorsky

Canadian Journal of Economics, 1994, vol. 27, issue 1, 112-28

Abstract: An empirical investigation into the determinants and persistence of Canadian tariff rates was conducted. Empirical results indicate that both U.S. tariff rates and real Canadian GDP have causal influence on Canadian tariff rates. Canadian real trade balance and political affiliation, however, were found not to influence Canadian tariff rates. Evidence of persistence in Canadian tariff rates is also presented. The authors' results indicate that when Canadian tariff rates are increased, for whatever reason, the effect was prevalent in the fifth year even if the original stimulus had disappeared.

Date: 1994
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