Trade liberalization, comparative advantage, and scale economies stock market evidence from Canada
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Cited by (28)
How do investors in Chinese stock market react to external uncertainty? An event study to the Sino-US disputes
2021, Pacific Basin Finance JournalCitation Excerpt :A large number of studies have also analyzed the impact of information uncertainty on the stock market and investors' expectations from the perspective of events. Some studies have quantified the stock market's response to the announcement of PTA member countries, and found that the announcement of trade liberalization has a significant negative effect on stock returns (Thompson, 1994; Breinlich, 2014; Moser and Rose, 2014). Breinlich et al. (2018) and Davies and Studnicka (2018) study the stock market's response to Brexit voting.
The heterogeneous impact of Brexit: Early indications from the FTSE
2018, European Economic ReviewCitation Excerpt :While this work examines the introduction of trade barriers, other studies consider the impact of trade integration. For example, Thompson (1994) and Breinlich (2014) both examine the Canada-United States Free Trade Agreement. Thompson finds that larger firms in industries where Canada has a comparative advantage performed better; Breinlich builds on her results by showing that the same is true for more productive firms and those that export.
Who benefits from regional trade agreements? The view from the stock market
2014, European Economic ReviewCitation Excerpt :The few empirical studies close to ours study the stock market reactions of individual firms. Thompson (1993, 1994), Rodriguez (2003) and Breinlich (2011) all exploit important news about the Canada-US free trade agreement and NAFTA. These papers use the stock market to study trade determination, and find evidence in favor of economies of scale, factor-intensity and heterogeneous firm models.
Analyst earnings forecast revisions and the persistence of antidumping relief
2007, International Review of Economics and FinanceCitation Excerpt :Examples are Dohlman (2001), Hartigan, Perry, and Kamma (1986, 1989, 1994 ), Hughes, Lenway, and Rayburn (1997), Lenway, Rehbein, and Starks (1990), Rehbein and Starks (1995), and Blonigen, Tomlin, and Wilson (2004). Other examples of the use of event studies in the analysis of trade policy are the Brander (1991) and the Thompson (1993, 1994) studies of the U.S./Canada free trade agreement. Begley, Hughes, Rayburn, and Runkle (1998) examined the effect of export taxes on Canadian softwood lumber on U.S. and Canadian firms.
Equity market integration in the NAFTA region: Evidence from unit root and cointegration tests
2005, International Review of Financial AnalysisCitation Excerpt :Indeed, in a more detailed study also using the event study methodology, Aggarwal, Long, Moore, and Ervin (1998) document the differential impact of the 1993 passage of NAFTA on the stock market valuation of many US industries. Similarly, Thompson (1994) notes some relative adjustment among various sectors but no significant stock market impact of the formation of NAFTA for Canadian firms. In a recent study of Canadian firms for the pre- and post-NAFTA periods, Mathur, Singh, and Gleason (2001) show that the formation of NAFTA did not affect the relationship between the degree of multinationality and firm performance.
Shareholder wealth effects of free trade: U.S. and Mexican stock market response to NAFTA
1998, International Review of Economics and Finance
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This paper is based on my Ph.D. dissertation at the University of Michigan and was written in part while I was at the University of Toronto. I thank Alan Deardorff, Brian Erard, Nancy Gallini, James Levinsohn, Joel Slemrod, Robert Stern, Dan Trefler, Valerie Suslow, and seminar participants at the Canadian Economics Association Meetings, Carleton University, the University of Toronto, Wilfrid Laurier University, York University, the 1991 Summer Conference at the University of British Columbia, and the 1991 University of Western Ontario Conference on International Trade for helpful comments on earlier drafts of this paper and Maura Binley for research assistance. I am grateful to two anonymous referees for excellent suggestions.