Trade liberalization, profitability, and financial leverage

• 成果类型: Article
• 署名作者: Baggs, J; Brander, JA
• 署名单位: University of British Columbia; University of Victoria
• 刊物名称: JOURNAL OF INTERNATIONAL BUSINESS STUDIES
• ISSN/ISSBN: 0047-2506
• DOI: 10.1057/palgrave.jibs.8400183
• 发表日期: 2006
• 页码: 196-211
• 关键词: international trade liberalization; profitability; leverage; NAFTA

摘要

We investigate the effects of trade liberalization on profitability and financial leverage using Canadian data arising from implementation of the Canada-US Free Trade Agreement. We find that falling domestic tariffs are associated with declining profits, especially for import-competing firms, while falling foreign tariffs are associated with increasing profits, especially for export-oriented firms. Also, import tariff reductions tend to increase leverage while export tariff reductions tend to decrease leverage.