Working Paper Series
Colin A. Carter and Shon Ferguson
Deregulation and Regional Specialization: Evidence from Canadian Agriculture
Abstract: For about seventy years, the Canadian Wheat Board (CWB)
was one of the world’s largest export “single desk” state traders in
agriculture, until it was deregulated in 2012 and stripped of its marketing
powers. One of the main crops controlled by the CWB was barley. We estimate
the impact of the removal of the CWB’s single desk on the spatial pattern
of malting barley production in Western Canada. We find that deregulation
encouraged growers located closer to malt barley plants to increase
production relative to growers located further from the plants.
Additionally, malting barley production shifted to regions with more of a
natural advantage arising from climatic conditions. This change in cropping
patterns after deregulation can be explained by efficiency gains, combined
with transportation and handling cost savings.
Keywords: tate trading; Deregulation; Agricultural regulation; Trade costs; Comparative advantage; (follow links to similar papers)
JEL-Codes: L43; Q17; Q18; R12; R14; (follow links to similar papers)
25 pages, October 23, 2017
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