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Title: |
Regional Price Dynamics and Countervailing Duties: Did the Canada-U.S.
Hog/Pork Dispute Have a Permanent Impact? |
| Author: |
Larue, Bruno;
Tanguay, Luc |
| Author
Affiliation: |
CREA, U Laval;
Agriculture & Agri-Food Canada |
| Source: |
International Economic Journal, Spring 1999, v. 13, no. 1, pp. 81-101 |
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Publication Date: |
Spring 1999 |
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Abstract: |
Leamer (1988) argues that permanent trade
barriers trigger stronger and more lasting responses than temporary
ones. We analyze the effects of U.S. countervailing duties (CVDs)
imposed on Canadian hog and pork exports by testing the stability of
long run arbitrage/cointegration relations between U.S., Quebec and
Alberta hog prices. The CVDs induced large deviations from the long run
arbitrage relations but these effects vanished with the removal of the
pork CVD. Weak exogeneity tests show that the U.S. hog price did not
error correct during the dispute period and confirm that CVDs contribute
to insulate a large domestic market from foreign competition. |
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