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The Determinants and Persistence of Canadian Tariff Rates

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  • Irene Henriques
  • Perry Sadorsky

Abstract

An empirical investigation into the determinants and persistence of Canadian tariff rates was conducted. Empirical results indicate that both U.S. tariff rates and real Canadian GDP have causal influence on Canadian tariff rates. Canadian real trade balance and political affiliation, however, were found not to influence Canadian tariff rates. Evidence of persistence in Canadian tariff rates is also presented. The authors' results indicate that when Canadian tariff rates are increased, for whatever reason, the effect was prevalent in the fifth year even if the original stimulus had disappeared.

Suggested Citation

  • Irene Henriques & Perry Sadorsky, 1994. "The Determinants and Persistence of Canadian Tariff Rates," Canadian Journal of Economics, Canadian Economics Association, vol. 27(1), pages 112-128, February.
    • Handle: RePEc:cje:issued:v:27:y:1994:i:1:p:112-28
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    Cited by:

    1. Hazel Parcon, 2008. "Disaggregating PTAs at the Role of International Division of Labor on PTA Formation," Working Papers 200806, University of Hawaii at Manoa, Department of Economics.
    2. Aurélie Cassette & Etienne Farvaque, 2022. "American and Australian Tariff Policies: Do They Rock or Tango or Roll?," Sustainability, MDPI, vol. 14(20), pages 1-14, October.
    3. Sherman, Richard, 2002. "Import prices and the political economy of tariffs: evidence from Germany, Japan, and the United States, 1954-1994," Economics Letters, Elsevier, vol. 76(1), pages 11-17, June.

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