Squeaky Hinges: Widening the Door to Canadian Cross-border Investment

For the period 2001-2007, Canada ranked only 25th among 98 countries in its openness to world markets as measured by cross-border investment flows as a percentage of GDP. For inbound investment flows alone, it ranked 47th. Canada should look to dismantle barriers to both inbound and outbound foreign investment to increase business exposure to global competition.international policy, foreign direct investment, direct investment abroad

A Simple and Flexible Dynamic Approach to Foreign Direct Investment Growth: The Canada-United States Relationship in the Context of Free Trade.

This paper asks a simple question: Did Wilfred Laurier’s dream of free trade with the United States, when it came to fruition in 1989, also impact on foreign direct investment (FDI) into Canada by US multinationals? This paper argues that the customary static econometric approach found in the FDI literature, along with the assumption that policy changes influence only the intercept term, are inadequate to address the question. Instead we introduce an innovative dynamic framework to support the testing of hypotheses on behavioural changes in the variables using a structural break framework. A key conclusion is that prior to signing the free trade agreement US FDI responded only to current growth in the Canadian economy, in a unitary fashion, and current exchange rate shifts. This can be described as a static relationship. The implementation of the free trade agreements between Canada and the USA increased the responsiveness of US FDI to growth in the Canadian economy by a factor greater than two. Furthermore, dynamics are found in the form of a lagged effect for changes in the growth in the Canadian economy and interest rate differentials. These conclusions challenge the dominant view, including that in official policy circles, that the free trade agreement had no impact on US firms’ FDI decisions in Canada. Note: Previous versions of this paper were entitled: “A Simple and Flexible Dynamic Approach to Foreign Direct Investment Growth: Did Canada Benefit From the Free Trade Agreements with the United States?”Canada-United States, foreign direct investment, empirical relationship

“Canada will not Stand Idly by ...”: Ukraine in the Foreign Policy of Canada

Ukraine has always had a special place in Canadian foreign policy. Currently, Canada is deeply engaged in supporting Ukraine to restore political and economic stability and to implement democratic reforms. The Government in Ottawa has condemned Russian aggressive policy and the illegal military occupation of Crimea and has taken a variety of steps and initiatives since the beginning of the crisis in Ukraine in 2014 including imposing sanctions, economic and military assistance, and supporting of NATO measures

Regional integration and foreign direct investment : a conceptual framework and three cases

The authors discuss how regional investment agreements may affect the inward and outward flows of foreign direct investments in the integrating region. After describing the multidimensional character of the issue, they provide a conceptual framework for analysis as well as three case studies focused on different kinds of regional integration: (1) North-North integration (Canada joining the CUSFTA); (2) North-South integration (Mexico's accession to NAFTA); and (3) South-South integration (MERCOSUR). They conclude that the response to an integration agreement will, in each case, depend on the environmental change brought about by the regional investment agreements, the locational advantage of the country or region, the competitiveness of local firms in the integrating region, and the motives for foreign direct investment in and by the country or region in question. The creation of the Canada-U.S. Free Trade Agreement (CUSFTA), for example, had relatively little influence on direct investment patterns in Canada, since much of the trade between Canada and the United States had been liberalized long before the CUSFTA was established. By contrast, the Mexican accession to NAFTA brought about significant policy changes, which helps to explain foreign multinationals'increasing interest in the country. Similarly, the establishment of the MERCOSUR Common Market is likely to significantly affect the region's policy environment, which suggests that it may have a notable (although varying) impact on foreign direct investment in the four member countries.Economic Theory&Research,Environmental Economics&Policies,International Terrorism&Counterterrorism,Payment Systems&Infrastructure,Labor Policies,Trade and Regional Integration,Environmental Economics&Policies,TF054105-DONOR FUNDED OPERATION ADMINISTRATION FEE INCOME AND EXPENSE ACCOUNT,Economic Theory&Research,International Terrorism&Counterterrorism

Comparing Racial and Immigrant Health Status and Health Care Access in Later Life in Canada and the United States

Little comparative research exists on health experiences and conditions of minority groups in Canada and the United States, despite both countries having a racially diverse population with a signifi cant proportion of immigrants. This article explores race and immigrant disparities in health and health care access across the two countries. The study focus was on middle and old age given the change and increasing diversity in health and health care policy, such as Medicare. Logistic regression analysis of data from the 2002–2003 Joint Canada/United States Survey of Health shows that the joint effect of race and nativity on health outcomes – health differences between native and foreign-born Whites and non- Whites – is largely insignifi cant in Canada but considerable in the U.S. Non-White native and foreign-born Americans within both 45-to-64 and 65-and-over age groups experience signifi cant disadvantage in health status and access to care, irrespective of health insurance coverage, demographic, socio-economic, and lifestyle factors.health, obesity, health care, race, immigrant, Canada, United States

'El teatro me ha dejado a mí': Una entrevista con Antón Arrufat"

The influence of political culture on foreign policy is a much-neglected topic. This article focuses on one aspect of political culture: the concept of post-materialism as developed by Inglehart. Using Canada and South Africa as case studies, the article determines the degree of post-materialism of these two countries’ political culture and then attempts to assess the extent to which the ideas of post-materialism have influenced the foreign policy of the two countries. The methodology is that of examining the ratifications of relevant UN conventions and the press releases of the foreign ministries of the two governments dealing with the subjects of gender equality, environmentalism and the goal of nuclear disarmament, three typical post-materialist causes. The article does not find a relationship between post-materialism and the foreign policy of Canada and South Africa

Canada Is Missing Out On Global Capital Market Integration

Recent foreign takeovers of significant companies, including Alcan, Falconbridge, Inco, and Four Seasons Hotels, have grabbed Canadians’ attention, raising fresh worries over whether Canada is being “hollowed out.” Does the pace of foreign direct investment threaten our economic independence?international policy, capital markets,

Measuring the Impact of Intervention on Exchange Market Pressure

We introduce an index of ex ante exchange market pressure (EMP) that can be used as a benchmark against which to measure the effectiveness of sterilized intervention. Ex ante EMP is the change in the exchange rate that would be observed if the authorities refrain from intervening and agents correctly anticipate this outcome. Ex post EMP measures exchange market pressure under the policy actually implemented. We use a ratio of these two EMP measures to assess the effectiveness of sterilized intervention in Canada and Australia, and find that its effects persist even in quarterly data.exchange market pressure; foreign exchange intervention; Bank of Canada

Effectively Engaging Diasporas Under the New Canadian Department of Foreign Affairs, Trade and Development

With the amalgamation of the Canadian International Development Agency (CIDA) and the Department of Foreign Affairs and International Trade (DFAIT) into a new Department of Foreign Affairs, Trade and Development (DFATD), new opportunities will emerge for a coherent approach to diaspora engagement initiatives that combine the existing policy directions under a single umbrella. DFATD should work with diasporas in Canada to facilitate and improve engagement with the sending regions. This engagement can occur through current programs, as well as the creation of a new pilot project requiring cooperation between the different policy approaches. Engagement should vary according to the different levels of formal government diasporic engagement of the sending countries, as countries with weak government engagement will require policy approaches distinct from countries with strong government engagement

Peackeeping, Peace, Memory: Reflections on the Peacekeeping Monument in Ottawa

Since 1948, under the auspices of the United Nations (UN), Canada has contributed over 80,000 men and women from all branches of the armed forces to global peacekeeping. During the 1950s and 1960s, Canada was, in fact, the greatest contributor of ’Blue Helmet’ soldiers to UN peacekeeping endeavours and became the undisputed leader in global peacekeeping. Although peacekeeping was never the sole preoccupation of Canada’s foreign policy, Canadian politicians liked to be seen as projecting an image as ’helpful fixers,’ acting as a voice of moderation between the extremes of the two superpowers during the Cold War. It was a Canadian statesman, Lester B. Pearson, who first used the UN Charter to create the idea of an international peacekeeping force—a concept that earned him a Nobel Peace Prize in 1957