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

Zhiqi Chen and Marcel Voia

Frontiers of Economics in China-Selected Publications from Chinese Universities, 2018, vol. 13, issue 1, 93-115

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; Canada-Chile trade; nonparametric decompositions; regression discontinuity (search for similar items in EconPapers)
JEL-codes: F12 F13 (search for similar items in EconPapers)
Date: 2018
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Citations: View citations in EconPapers (1)

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http://journal.hep.com.cn/fec/EN/10.3868/s060-007-018-0008-2 (application/pdf)

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Working Paper: Short-Term and Long-Term Margins of International Trade: Evidence from the Canada-Chile Free Trade Agreement (2018)
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Persistent link: https://EconPapers.repec.org/RePEc:fec:journl:v:13:y:2018:i:1:p:93-115

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