Thesis
The economic impact of the tariff on Canadian softwood lumber on the Washington economy: A general equilibrium analysis
Washington State University
Master of Arts (MA), Washington State University
2003
Handle:
https://hdl.handle.net/2376/111
Abstract
The purpose of the paper is to examine the economic impact of the tariff imposed on Canadian softwood lumber by the U.S. in May 2002, on the Washington economy. A sixteen-sector computable general equilibrium (CGE) model of the Washington economy was used to analyze the effects of the tariff. Two simulations were done to examine the effects of the tariff. The first simulation modeled the effects of the tariff only, while the second simulation modeled the effects of the tariff combined with a lower world price of soft wood lumber. Each simulation was done using different values of the Armington elasticity. The results indicate that there is an increase in Washington lumber output and a decrease in imports from Canada, in the first simulation. There is a positive effect on employment in the lumber sector, however, the state as a whole is worse-off due to the tariff. The results of the second simulation suggest that the lumber output decreases in Washington. Imports from Canada increase in this case. There is a negative effect on employment in the lumber sector. The state as a whole is better-off. The results indicate that the values of Armington elasticity play an important role in determining the level of impacts. The role of agricultural and processed food exports of Washington was the focus of the second part of the study. An import-outport model of Washington, based on the IMPLAN software, was used for the analysis. The impact of agricultural and food processing sector exports to rest of the U.S. and foreign countries is worth $16,308,442,020 of output (4.4 percent of the total output) and 150,039 jobs (4.2 percent of the total number of jobs), for the state economy. Agricultural and processed food exports to foreign countries generated $2,707,227,476 worth of output (0.73 percent of the total output) and accounted for 28,501 jobs (0.80 percent of the total number of jobs) in the state economy. Washington has a positive trade balance (difference between exports and imports) in the case of agricultural commodities, while there is a negative trade balance in the case of processed food.
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Details
- Title
- The economic impact of the tariff on Canadian softwood lumber on the Washington economy
- Creators
- Joydeep Ghosh
- Contributors
- David Holland (Degree Supervisor)
- Awarding Institution
- Washington State University
- Academic Unit
- Economic Sciences, School of
- Theses and Dissertations
- Master of Arts (MA), Washington State University
- Publisher
- Washington State University; Pullman, Wash. :
- Identifiers
- 99900525115201842
- Language
- English
- Resource Type
- Thesis