Liberalizing Foreign Direct Investment Restrictions in Canada: A Multi-Country Computable General Equilibrium Analysis

Marcel Mérette, Patrick Georges and Yazid Dissou

No 331743, Conference papers from Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project

Abstract: This paper develops a multi-country multi-sector static general equilibrium model to assess the economic effects of liberalizing FDI restrictions in Canada, either unilaterally, bilaterally (with the US), or multilaterally. From a strict economic point of view, removing barriers to inward FDI could reap great benefits to all regions of the world, and in particular to the ones in which the restrictions are initially severe. Our simulation results show that the benefits of fewer restrictions on FDI stem mainly from a better resource reallocation across the world and an increased capital stock in foreign-owned firms accompanied by a positive spillover effect on total factor productivity. Up to 80% of the welfare increase resulting from liberalizing FDI restrictions is due to increased total factor productivity.

Keywords: Research Methods/Statistical Methods; Productivity Analysis (search for similar items in EconPapers)
Pages: 53
Date: 2008
References: Add references at CitEc
Citations:

Downloads: (external link)
https://ageconsearch.umn.edu/record/331743/files/3917.pdf (application/pdf)

Related works:
Working Paper: Liberalizing Foreign Direct Investment Restrictions in Canada: A Multi-Country Computable General Equilibrium Analysis (2008)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ags:pugtwp:331743

Access Statistics for this paper

More papers in Conference papers from Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project Contact information at EDIRC.
Bibliographic data for series maintained by AgEcon Search ().