Foreign competition boosts GDP but widens inequality in Canada
The study looked at how increased foreign competition affects jobs, families, and income distribution in Canada by using a special economic model. With more foreign competition, prices of imported and exported products dropped, hitting manufacturing sectors. In the short term, this led to slightly more poverty and inequality while shrinking jobs in export-focused manufacturing. But in the long run, it boosted savings, notably in primary and service industries, raised the overall economy's value, and lowered poverty rates especially in families with two or more people.