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Intra-National Effects of a Countervailing Duty on the United States/Canadian Hog Market

Author

Listed:
  • Bruce L. Benson
  • Merle D. Faminow
  • Milton H. Marquis
  • Douglas G. Sauer

Abstract

A countervailing duty (CVD) was placed on Canadian hog imports into the United States beginning in 1985. Not surprisingly, the CVD reduced Canadian hog prices relative to U.S. hog prices, but the relative impact varied geographically. The CVD created incentives for downstream substitution of Canadian pork products, so relative hog prices were reduced more in Canadian provinces with limited processing capacity. Multivariate time series analysis, including an examination of short-run dynamics, reveals differential dynamic impacts of U.S. prices in Canadian sub-markets after introduction of the CVD.

Suggested Citation

  • Bruce L. Benson & Merle D. Faminow & Milton H. Marquis & Douglas G. Sauer, 1994. "Intra-National Effects of a Countervailing Duty on the United States/Canadian Hog Market," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 16(2), pages 187-201.
    • Handle: RePEc:oup:revage:v:16:y:1994:i:2:p:187-201.
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    Citations

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    Cited by:

    1. Franken, Jason R.V. & Parcell, Joseph L. & Tonsor, Glynn T., 2011. "Impact of Mandatory Price Reporting on Hog Market Integration," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 43(2), pages 1-13, May.
    2. Unterschultz, James R., 2000. "New Instruments For Co-Ordination And Risk Sharing Within The Canadian Beef Industry," Project Report Series 24046, University of Alberta, Department of Resource Economics and Environmental Sociology.
    3. Zhao, Zishun & Klein, Nicole L. & Santos, Joseph M., 2001. "The Effects Of Exchange Rate Fluctuations On Live Hog Trade Between The U.S. And Canada," 2001 Annual meeting, August 5-8, Chicago, IL 20474, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    4. Bruce L. Benson & Merle D. Faminow & Milton H. Marquis & Douglas G. Sauer, 1995. "Delineating Spatial Markets Using Multivariate Time Series," The Review of Regional Studies, Southern Regional Science Association, vol. 25(3), pages 247-270, Winter.
    5. Larue Bruno & Tanguay Luc, 1999. "Regional Price Dynamics and Countervailing Duties: Did the Canada-U.S. Hog/Pork Dispute Have a Permanent Impact?," International Economic Journal, Taylor & Francis Journals, vol. 13(1), pages 81-101.

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