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Deregulation and regional specialization: Evidence from Canadian agriculture

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  • Colin A. Carter
  • Shon M. Ferguson

Abstract

For about 70 years, the Canadian Wheat Board (CWB) was one of the world's largest export single desk state traders in agriculture, until it was deregulated in 2012 and stripped of its marketing powers. One of the main crops controlled by the CWB was barley. We estimate the impact of the removal of the CWB's single desk on the spatial pattern of malting barley production in Western Canada. We find that deregulation encouraged growers located closer to malt barley processing plants to increase production relative to growers located further from the plants. This change in cropping patterns after deregulation can be explained by efficiency gains, combined with transportation and handling cost savings.

Suggested Citation

  • Colin A. Carter & Shon M. Ferguson, 2019. "Deregulation and regional specialization: Evidence from Canadian agriculture," Canadian Journal of Economics, Canadian Economics Association, vol. 52(4), pages 1497-1522, November.
    • Handle: RePEc:cje:issued:v:52:y:2019:i:4:p:1497-1522
    DOI: 10.1111/caje.12411
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    Cited by:

    1. Cardwell, Ryan & Ghazalian, Pascal L., 2022. "State-trading enterprises and productivity: Farm-level evidence from Canadian agriculture," 96th Annual Conference, April 4-6, 2022, K U Leuven, Belgium 321159, Agricultural Economics Society - AES.
    2. Colin A. Carter & Shon M. Ferguson, 2020. "State trading deregulation and prairie durum wheat production," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 68(1), pages 107-116, March.

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    JEL classification:

    • L43 - Industrial Organization - - Antitrust Issues and Policies - - - Legal Monopolies and Regulation or Deregulation

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