Canada鈥檚 restrictions on foreign competition hurt the economy, UU直播 researchers argue in Globe and Mail
Published: June 20, 2019
Canada鈥檚 protection of cellphone companies, airlines and banks from foreign competition doesn鈥檛 just mean higher prices for consumers, it also hurts the economy by stifling productivity and job creation, according to a Globe and Mail op-ed summarizing research findings by faculty members at the UU直播鈥檚 Rotman School of Management.
Walid Hejazi, associate professor of international business, and Daniel Trefler, professor of economic analysis and policy, write that while it鈥檚 no secret Canadian consumers have long overpaid for certain services, new research shows barriers on foreign competition also hurt the economy as a whole.
鈥淩estrictions on foreign entry have cost the Canadian economy a whopping 137,400 jobs. Or, for those who prefer dollar figures, they cost Canadian wage earners $10-billion each and every year,鈥 they write, citing findings from their paper , which was recently published in the Journal of International Business Policy.
鈥淭he restrictions also slow down productivity growth, creating a drag on the economy.鈥
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