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Frontiers of Economics in China

ISSN 1673-3444

ISSN 1673-3568(Online)

CN 11-5744/F

Postal Subscription Code 80-978

Front. Econ. China    2018, Vol. 13 Issue (1) : 93-115    https://doi.org/10.3868/s060-007-018-0008-2
Orginal Article |
Short-Term and Long-Term Margins of International Trade: Evidence from the Canada-Chile Free Trade Agreement
Zhiqi Chen1(), Marcel C. Voia2()
1. Department of Economics, Carleton University, Ottawa, Ontario, K1S 5B6, Canada
2. Department of Economics, Carleton University, Ottawa, Ontario, K1S 5B6, Canada
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Abstract

We investigate the impact of the Canada-Chile Free Trade Agreement (CCFTA) on Canadian exports to Chile, particularly the dynamic effects of the agreement on extensive and intensive margins of trade. Consistent with the literature, we find that the extensive margin effects occurred later than the intensive margin effects and became more prominent in the long-term. Surprisingly, the intensive margin effects died off in the long-term. A theoretical model is constructed to show that our results can arise in a standard setting of intra-industry trade.

Keywords preferential trade agreements      margins of international trade      Canada-Chile trade      nonparametric decompositions      regression discontinuity     
Issue Date: 15 March 2018
 Cite this article:   
Zhiqi Chen,Marcel C. Voia. Short-Term and Long-Term Margins of International Trade: Evidence from the Canada-Chile Free Trade Agreement[J]. Front. Econ. China, 2018, 13(1): 93-115.
 URL:  
http://academic.hep.com.cn/fec/EN/10.3868/s060-007-018-0008-2
http://academic.hep.com.cn/fec/EN/Y2018/V13/I1/93
[1] Chunrong Ai, Meixia Meng. A Locally Linear Estimation of Regression Discontinuity[J]. Front Econ Chin, 2011, 6(4): 495-506.
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