NAFTA, Infrastructure and the Canadian Automotive Sector

The paper examines recent trends such as just-in-time production, outsourcing, and the re-organization of the North American automotive sector, as well as projected developments in Asia, especially in Japan and China, and their impacts on the Canadian auto sector. In addition to presenting trends in historical data on the Canadian automotive sector, a CES-translog cost model is estimated and analyzed to study developments in the sector.