Tariff Structure, Trade Expansion and Canadian Protectionism from 1870-1910

Posted: 27 May 2013

See all articles by Eugene Beaulieu

Eugene Beaulieu

University of Calgary - Department of Economics

Jevan Cherniwchan

University of Calgary

Date Written: 2011

Abstract

We employ the Anderson-Neary Trade Restrictiveness Index (TRI) to examine Canadian trade policy during the first wave of globalization (1870-1913). Our analysis is the first to examine two important features of this period using the TRI: 1) the shift to protectionist trade policies, and 2) the large expansion in the volume and variety of goods traded. Using customs data on imports at the article level, we show that Canadian trade policy during this period was at least 11% more restrictive than previously understood. We compute the first estimates of the static welfare losses associated with tariff policy at this time to be 0.7-1.5% of GDP. Moreover, we show how trade expansion along the extensive margin affects the restrictiveness and welfare cost associated with a given trade policy.

Suggested Citation

Beaulieu, Eugene and Cherniwchan, Jevan, Tariff Structure, Trade Expansion and Canadian Protectionism from 1870-1910 (2011). Canadian Journal of Economics, 2011, University of Alberta School of Business Research Paper No. 2013-328, Available at SSRN: https://ssrn.com/abstract=2270028

Eugene Beaulieu (Contact Author)

University of Calgary - Department of Economics ( email )

2500 University Drive, NW
Calgary, Alberta T2N 1N4
Canada

Jevan Cherniwchan

University of Calgary ( email )

University Drive
Calgary, Alberta T2N 1N4
Canada

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