We investigate the impact of the Canada-Chile Free Trade Agreement （CCFTA） on Canadian exports to Chile, particularly the dynamic effects of the agree- ment on extensive and intensive margins of trade. Consistent wi...We investigate the impact of the Canada-Chile Free Trade Agreement （CCFTA） on Canadian exports to Chile, particularly the dynamic effects of the agree- ment 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 ef- fects 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.展开更多
文摘We investigate the impact of the Canada-Chile Free Trade Agreement （CCFTA） on Canadian exports to Chile, particularly the dynamic effects of the agree- ment 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 ef- fects 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.
