Ferguson, Shon
- Research Institute of Industrial Economics
Abstract
We estimate the impact of removing an export subsidy on the local economies of Alberta, Saskatchewan and Manitoba, exploiting the large regional variation of a 1995 reform. We find that the loss of the subsidy resulted in significantly lower farm value-added, farm asset values and local non-farm employment. The results suggest that the subsidy removal had detrimental spillover effects on the local non-agricultural economy that varied spatially across the Prairies. The point estimates suggest that the marginal effect of the subsidy loss on non-agricultural employment was five times as large as those obtained from traditional estimates of the multiplier effect.
Keywords
Agricultural trade liberalisation; export subsidy; local labour markets; market access; spillovers
Published in
Journal of Agricultural Economics
2019, volume: 70, number: 2, pages: 507-528
SLU Authors
UKÄ Subject classification
Business Administration
Publication identifier
- DOI: https://doi.org/10.1111/1477-9552.12309
Permanent link to this page (URI)
https://res.slu.se/id/publ/101559