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The Users Of Lumber And The Us-Canada Softwood Lumber Agreement: An Event Study

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  • Malhotra, Nisha
  • Gulati, Sumeet

Abstract

In this paper we analyze whether the Softwood Lumber Agreement between US and Canada imposed significant economic costs on the users of Lumber in the US. To ascertain this impact we use an event study. Our event study analyzes variations in the stock prices of lumber using firms listed at the major stock markets in the US. We find that events leading to the Softwood Lumber Agreement had significant negative impacts on the stock prices of industries using softwood lumber. The average reduction of stock prices for our sample of firms was approximately 5.42% over all the events considered.

Suggested Citation

  • Malhotra, Nisha & Gulati, Sumeet, 2003. "The Users Of Lumber And The Us-Canada Softwood Lumber Agreement: An Event Study," Working Papers 15842, University of British Columbia, Food and Resource Economics.
    • Handle: RePEc:ags:ubcwps:15842
    DOI: 10.22004/ag.econ.15842
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    References listed on IDEAS

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    1. Barber, Brad M. & Lyon, John D., 1997. "Detecting long-run abnormal stock returns: The empirical power and specification of test statistics," Journal of Financial Economics, Elsevier, vol. 43(3), pages 341-372, March.
    2. Daniel, Kent & Titman, Sheridan, 1997. "Evidence on the Characteristics of Cross Sectional Variation in Stock Returns," Journal of Finance, American Finance Association, vol. 52(1), pages 1-33, March.
    3. John S. Hughes & Stefanie Lenway & Judy Rayburn, 1997. "Stock Price Effects of U.S. Trade Policy Responses to Japanese Trading Practices in Semi-conductors," Canadian Journal of Economics, Canadian Economics Association, vol. 30(4), pages 922-942, November.
    4. Lenway, Stefanie & Morck, Randall & Yeung, Bernard, 1996. "Rent Seeking, Protectionism and Innovation in the American Steel Industry," Economic Journal, Royal Economic Society, vol. 106(435), pages 410-421, March.
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    Cited by:

    1. Kadochnikov, Pavel (Кадочников, Павел) & Flegontova, Tatiana (Флегонтова, Татьяна) & Aliev, Timur (Алиев, Тимур), 2018. "Dynamics and Structure of Non-Tariff Measures Applied in International Trade [Динамика И Структура Нетарифных Мер, Применяемых В Международной Торговле]," Ekonomicheskaya Politika / Economic Policy, Russian Presidential Academy of National Economy and Public Administration, vol. 6, pages 82-101, December.
    2. Sumeet Gulati & Nisha Malhotra, 2006. "Estimating Export Response in Canadian Provinces to the Canada-US Softwood Lumber Agreement," Canadian Public Policy, University of Toronto Press, vol. 32(2), pages 157-172, June.

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