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Internal Trade in Canada: Case for Liberalization
Author:
Mr. Jorge A Alvarez https://isni.org/isni/0000000404811396 International Monetary Fund

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Mr. Ivo Krznar
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https://orcid.org/0000-0003-4174-0286
, and
Trevor Tombe https://isni.org/isni/0000000404811396 International Monetary Fund

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Series:
IMF Working Papers
Volume/Issue:
Volume 2019: Issue 158
Language:
English
Publication Date:
22 Jul 2019
DOI:
https://doi.org/10.5089/9781498326650.001
ISBN:
9781498326650
ISSN:
1018-5941
Pages:
38
Keywords:
WP; free trade; trade cost; real wage; Internal trade; gains from trade; input-output linkages; Canada; elasticity of trade; free trade trade agreement; cost elasticity; migration model; government procurement rule; Trade barriers; Trade agreements; Trade liberalization; Trade balance; Employment; Global; trade growth decomposition; data description; costs of trade barriers; trade in Canada
Legal-disclaimer:
IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.
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This paper assesses the costs of internal trade barriers and proposes policies to improve internal trade. Estimates suggest that complete liberalization of internal trade in goods can increase GDP per capita by about 4 percent and reallocate employment towards provinces that experience large productivity gains from trade. The positive impact highlights the need for federal, provincial and territorial governments to work together to reduce internal trade barriers. There is significant scope to build on the new Canadian Free Trade Agreement to more explicitly identify key trade restrictions, resolve differences, and agree on cooperative solutions.
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Cover IMF Working Papers
IMF Working Papers
ISSN:
1018-5941
Publisher:
International Monetary Fund