TRADE LIBERALIZATION, COMPARATIVE ADVANTAGE, AND SCALE ECONOMIES - STOCK-MARKET EVIDENCE FROM CANADA

• 成果类型: Article
• 署名作者: THOMPSON, AJ
• 署名单位: University of Toronto
• 刊物名称: JOURNAL OF INTERNATIONAL ECONOMICS
• ISSN/ISSBN: 0022-1996
• DOI: 10.1016/0022-1996(94)90022-1
• 发表日期: 1994
• 页码: 1-27
• 关键词: free trade; STOCK MARKET PRICES

摘要

The Canada-United States Free Trade Agreement (FTA) provides an excellent opportunity to analyze the impact of a comprehensive trade liberalization- In this paper, a stock market event study is employed to capture investors' expectations about the consequences of this agreement for manufacturing firms in Canada. The primary question addressed is whether abnormal stock market returns corresponding to news about the FTA are consistent with hypotheses based on comparative advantage and economies of scale. The results indicate that both comparative advantage and scale economies played a role in determining investors' perceptions of the impact of the FTA.