THE EFFECTS OF THE 1996 U.S.‐CANADA SOFTWOOD LUMBER AGREEMENT ON THE INDUSTRIAL USERS OF LUMBER: AN EVENT STUDY |
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| Authors: | NISHA MALHOTRA SUMEET GULATI |
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| Institution: | 1. Lecturer, Department of Economics, University of British Columbia, 997‐1873 East Mall, Vancouver, British Columbia V6T 1Z1, Canada. Phone (604) 822‐4814, Fax (604) 822‐5915, E‐mail nisha@interchange.ubc.ca;2. Assistant Professor, Food and Resource Economics, Department of Forest Resources Management, University of British Columbia, Vancouver, British Columbia V6T 1Z1, Canada. Phone (604) 822‐2144, Fax (604) 822‐2184, E‐mail sumeet.gulati@ubc.ca |
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| Abstract: | In this article, we analyze whether the Softwood Lumber Agreement between the United States and Canada imposed significant economic costs on industries that use softwood lumber in the United States. To ascertain this impact, we use an event study. Our event study analyzes variations in the stock prices of lumber‐using firms listed at the major stock markets in the United States. We find that the news of events leading to the Softwood Lumber Agreement had significant negative impacts on the stock prices of industries using softwood lumber. The average reduction of stock prices for our sample of firms was approximately 5.42% over all the events considered. (JEL F13, F23) |
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