Applied Econometrics and International Development Vol.7-2 (2007) CANADA’S TRADE RELATIONS WITH CHINA

This paper explores trade relations between Canada and China which differ considerably in factor endowments. It focuses on Canada’s export- and import concentration and intra-industry trade involving China. The findings show that Canada’s exports to China are far more concentrated compared to Canada’s imports from China. The evidence shows that the degree of concentration of Canada’s exports to China has declined. The paper finds that intra-industry trade involving China and Canada is higher for high-tech products, than fo all products. Furthermore, the paper shows that Canada’s trade deficit with China in high-tech products has widened in recent years. JEL Classification: F