Trade exerts generally favorable effects on the performance of domestic manufacturing industries in the dimensions of allocative and productive efficiency. We review theory and recent evidence on these linkages and also explore a third effect on the turbulence of competitive conditions and the...

This paper studies changes in diversification of firms and plants since the early 1970s in the Canadian manufacturing sector. It finds that there has been a general increase in specialization of both firms and plants. Firms have been continuously reducing the span of industries in which they...

This paper studies the impact that a small country joining a regional trade agreement, but particularly a small country, might be expected to gain from the exploitation of scale economies. It makes use of the experience of Canada when it entered into the Canada-United States Free Trade Agreement...