A Panel Cointegration Analysis of the Canadian Trade Balance

Sami Khedhiri

Applied Econometrics and International Development, 2013, vol. 13, issue 2, 93-100

Abstract: This paper studies Canada international trade flows with its major trading partners. We examine bilateral trade flows between Canada and the US and we use panel cointegration methodology to estimate the import and export elasticities and we show that the Marshall-Lerner condition does hold. We also find evidence of cointegration relationship between Canadian export and import flows which suggests that the occurring cyclical trade deficits are sustainable in the long term.

Keywords: Trade Balance; Marshall-Lerner Condition; Panel Cointegration; Structural Change. (search for similar items in EconPapers)
Date: 2013
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