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Knowledge-Based Labor Productivity Improvements: Canada Case Study, 1961-2004

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  • KHAZABI, Massoud
  • FALLAHI, F.

Abstract

This paper examines the importance of Research and Development activities as a source of growth in labor productivity in the Canadian economy within last four decades. Time series data are used to develop an econometrics model that captures the interaction between labor productivity and R&D, stock of public infrastructure and trade openness. Extensive tests of quality of data, choice of model and structural breaks are performed to enrich the value of the research. Our results suggest that the type of capital involved has a significant effect on the extent of labor productivity and growth improvement. Innovation as the major characterizer of the knowledge based economy improves the labor productivity both in short and long run. The trade openness effect has been discussed in depth consequently.

Suggested Citation

  • KHAZABI, Massoud & FALLAHI, F., 2008. "Knowledge-Based Labor Productivity Improvements: Canada Case Study, 1961-2004," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 8(1), pages 98-106.
    • Handle: RePEc:eaa:aeinde:v:8:y:2008:i:1_8
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    References listed on IDEAS

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    More about this item

    Keywords

    Labour Productivity; Human Capital; Canada;
    All these keywords.

    JEL classification:

    • C5 - Mathematical and Quantitative Methods - - Econometric Modeling
    • J1 - Labor and Demographic Economics - - Demographic Economics
    • O51 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - U.S.; Canada

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