The Canada U.S. free trade agreement: Competitive tradeoffs between foreign direct investment and trade

Ravichandran Munirathinam, Mary Marchant and Michael Reed

International Advances in Economic Research, 1997, vol. 3, issue 3, 312-324

Abstract: This paper assesses the impact of the Canada U.S. Free Trade Agreement on exports and foreign direct investment of processed foods. Results indicate that U.S. exports to Canada more than doubled, while Canadian exports to the U.S. nearly doubled after the implementation of the Canada U.S. Free Trade Agreement in 1989. Regression results of the covariance model on panel data show that U.S. and Canadian food processing firms appear to use both exports and foreign direct investments as complementary market access strategies. Copyright International Atlantic Economic Society 1997

Date: 1997
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DOI: 10.1007/BF02294917

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