Internal Trade in Canada: Case for Liberalization

Author/Editor:

Jorge Alvarez ; Ivo Krznar ; Trevor Tombe

Publication Date:

July 22, 2019

Electronic Access:

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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.

Summary:

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.

Series:

Working Paper No. 19/158

Subject:

English

Publication Date:

July 22, 2019

ISBN/ISSN:

9781498326650/1018-5941

Stock No:

WPIEA2019158

Price:

$18.00 (Academic Rate:$18.00)

Format:

Paper

Pages:

38

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