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Labour Productivity Growth in Canadian Manufacturing: A Regional Analysis

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  • W P Anderson

    (Department of Geography, McMaster University, Hamilton, Ontario, L8S 4K1, Canada)

Abstract

In this paper an analysis of growth in labour productivity in the manufacturing sectors of six Canadian regions over the period 1962–84 is presented. A review of trends in labour productivity indicates that significant regional differences persist throughout the study period. Specifically, labour productivities in Atlantic Canada and in Manitoba and Saskatchewan are significantly lower than those in central Canada and the far western provinces. A model that decomposes growth in labour productivity into the contributions of growth in the capital-labour ratio, scale economies, and technical progress while controlling for business cycle effects is estimated for each of five Canadian regions. Alternative specifications are employed in order to help distinguish between the effects of internal scale economies and agglomeration economies. The results support the hypothesis that agglomeration economies make a significant contribution to growth in labour productivity. Although rapid growth in the capital — labour ratio contributed significantly to growth in labour productivity in the Atlantic region, it was not sufficient to erase regional differences.

Suggested Citation

  • W P Anderson, 1990. "Labour Productivity Growth in Canadian Manufacturing: A Regional Analysis," Environment and Planning A, , vol. 22(3), pages 309-320, March.
    • Handle: RePEc:sae:envira:v:22:y:1990:i:3:p:309-320
    DOI: 10.1068/a220309
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    References listed on IDEAS

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    1. A. P. Thirlwall, 2015. "A Model of Regional Growth Rate Differences on Kaldorian Lines," Palgrave Studies in the History of Economic Thought, in: Essays on Keynesian and Kaldorian Economics, chapter 12, pages 286-301, Palgrave Macmillan.
    2. Ronald L. Moomaw, 1983. "Spatial Productivity Variations in Manufacturing: A Critical Survey of Cross-Sectional Analyses," International Regional Science Review, , vol. 8(1), pages 1-22, June.
    3. Nadiri, M Ishaq, 1970. "Some Approaches to the Theory and Measurement of Total Factor Productivity: A Survey," Journal of Economic Literature, American Economic Association, vol. 8(4), pages 1137-1177, December.
    4. Meric S. Gertler, 1987. "Economic And Political Determinants Of Regional Investment And Technical Change In Canada," Papers in Regional Science, Wiley Blackwell, vol. 62(1), pages 27-43, January.
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    Cited by:

    1. Baldwin, John R. Beckstead, Desmond Brown, W. Mark Rigby, David, 2007. "Économies urbaines et productivité," Série de documents de recherche sur l'analyse économique (AE) 2007045f, Statistics Canada, Direction des études analytiques.
    2. Baldwin, John R. Beckstead, Desmond Brown, W. Mark Rigby, David, 2007. "Urban Economies and Productivity," Economic Analysis (EA) Research Paper Series 2007045e, Statistics Canada, Analytical Studies Branch.

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