We found a match
Your institution may have access to this item. Find your institution then sign in to continue.
- Title
Demand patterns and Canada's trade in services.
- Authors
Wernerheim, C.; Waples, M.
- Abstract
Canada's trade in commercial services appears inconsistent with what manufacturing-oriented Heckscher-Ohlin theory predicts. Canada's services trade is overwhelmingly intra-industry, involving countries whose factor proportions and demand patterns are similar-findings consistent with the 'new' trade theory, and the Linder hypothesis: that there is a uni-directional causal relationship flowing from the similarity (convergence) in demand patterns amongst trading partners, to Canada's exports to those partners. Support for this conjecture is found for the US, the UK, and Japan. We infer that liberalization of trade in commercial services is likely welfare enhancing, with gains greater within trade arrangements and entities such as the NAFTA, the EU, and the OECD.
- Subjects
CANADA; SERVICE industries; COMPARATIVE advantage (International trade); HECKSCHER-Ohlin-Samuelson model; FACTOR proportions; FREE trade; ECONOMIC demand
- Publication
International Economics & Economic Policy, 2013, Vol 10, Issue 2, p159
- ISSN
1612-4804
- Publication type
Article
- DOI
10.1007/s10368-011-0199-7