Lagging Behind: Productivity and the Good Fortune of Canadian Provinces
AbstractThe good fortune of bountiful natural resources is not enough to ensure rising incomes for Canadians in the long term. Growing labour productivity is the most important determinant of future economic welfare and on that measure, Canada is falling behind its major trading partners. Increasing labour productivity does not mean workers working harder for less money, a common canard. It means more investment in one of three factors: 1) human capital (education or other learning); 2) physical capital (plants or other infrastructure); or 3) technology. Just as an individual’s income is in the long-run dependent on how productive he or she is, so too is that of the nation as a whole. If Canada fails to improve its productivity, the incomes of both individual Canadians and the nation as a whole will fall behind those of other developed countries.
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Bibliographic InfoArticle provided by C.D. Howe Institute in its journal C.D. Howe Institute Commentary.
Volume (Year): (2011)
Issue (Month): 331 (June)
Economic Growth and innovation; Canadian provinces; labour productivity;
Find related papers by JEL classification:
- D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
- O47 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Measurement of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
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