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Effects of global trade liberalization on softwood lumber markets

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This study develops a world spatial equilibrium softwood lumber model comprised of the major importing and exporting countries/regions to analyse the impacts of global trade reform on the world softwood lumber market. The results show that free trade leads to an increase in lumber trade, and Canadian producers and US consumers are the biggest beneficiaries. Trade liberalization improves the overall world welfare as world producer and consumer surpluses increase. The result highlights the importance of moving towards free trade in the global softwood lumber market.

Document Type: Research Article


Affiliations: 1: Department of Agricultural Economics, University of Idaho, Moscow, ID 83844-2334, USA 2: Purdue University, West Lafayette, IN, USA

Publication date: November 10, 2006

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