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Interprovincial versus International Free Trade: The Brewing Industry

Author

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  • I. J. Irvine
  • W. A. Sims
  • A. Anastasopoulos

Abstract

This paper examines the potential welfare changes resulting from the removal of the interprovincial and international trade barriers currently in place in the brewing industry. Using a cost function estimated on plant-level data, the authors find that the potential gains from rationalizing production, following liberalizing trade between Canada's provinces, outweigh the further benefits that would result from free trade in the international sphere, given interprovincial free trade. The rationalization of the industry in terms of a reduced number of plants could lead to producer gains (on a recurring basis) equal to as much as 15 percent of expenditures at markets prices.

Suggested Citation

  • I. J. Irvine & W. A. Sims & A. Anastasopoulos, 1990. "Interprovincial versus International Free Trade: The Brewing Industry," Canadian Journal of Economics, Canadian Economics Association, vol. 23(2), pages 332-347, May.
    • Handle: RePEc:cje:issued:v:23:y:1990:i:2:p:332-47
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    Cited by:

    1. Joe Kerkvliet & William Nebesky & Carol Tremblay & Victor Tremblay, 1998. "Efficiency and Technological Change in the U.S. Brewing Industry," Journal of Productivity Analysis, Springer, vol. 10(3), pages 271-288, November.
    2. S Milne & S Tufts, 1993. "Industrial Restructuring and the Future of the Small Firm: The Case of Canadian Microbreweries," Environment and Planning A, , vol. 25(6), pages 847-861, June.

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