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Canada's Productivity Performance in International Perspective

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  • Dirk Pilat

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Abstract

Considering the entire 1995-2003 period and compared to all OECD countries, this paper presents the view that Canada has actually performed quite well in terms of labour productivity growth. The author points to two factors that have fostered productivity growth in Canada: a high level of human capital and low barriers to firm creation. The latter facilitates creative destruction by allowing new firms to challenge existing firms and force less productive firms out of the market. Canada also appears to have benefited from innovation driven by ICT use and related organizational change, especially in the service sector. One weakness highlighted is innovative capacity, as Canada generally lags most other countries in terms of R&D intensity and patents.

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Bibliographic Info

Article provided by Centre for the Study of Living Standards in its journal International Productivity Monitor.

Volume (Year): 10 (2005)
Issue (Month): (Spring)
Pages: 24-44

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Handle: RePEc:sls:ipmsls:v:10:y:2005:2

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Related research

Keywords: Labour Productivity; Productivity; Productivity Growth; Investment; Information Technology; Information and Communication Technologies; Canada; United States; R&D; Productivity Comparisons; OECD;

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References

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  1. Nadim Ahmad & François Lequiller & Pascal Marianna & Dirk Pilat & Paul Schreyer & Anita Wölfl, 2003. "Comparing Labour Productivity Growth in the OECD Area: The Role of Measurement," OECD Statistics Working Papers 2003/5, OECD Publishing.
  2. Gu, Wulong & Baldwin, John R., 2004. "Industrial Competition, Shifts in Market Share and Productivity Growth," Economic Analysis (EA) Research Paper Series 2004021e, Statistics Canada, Analytical Studies Branch.
  3. Danny Leung, 2004. "The Effect of Adjustment Costs and Organizational Change on Productivity in Canada: Evidence from Aggregate Data," International Productivity Monitor, Centre for the Study of Living Standards, vol. 9, pages 52-61, Fall.
  4. Nadim Ahmad, 2003. "Measuring Investment in Software," OECD Science, Technology and Industry Working Papers 2003/6, OECD Publishing.
  5. Dominique Guellec & Bruno van Pottelsberghe de la Potterie, 2001. "R&D and Productivity Growth: Panel Data Analysis of 16 OECD Countries," OECD Economic Studies, OECD Publishing, vol. 2001(2), pages 103-126.
  6. Paul Conway & Véronique Janod & Giuseppe Nicoletti, 2005. "Product Market Regulation in OECD Countries: 1998 to 2003," OECD Economics Department Working Papers 419, OECD Publishing.
  7. John Haltiwanger & Ron Jarmin & Thorsten Schank, 2003. "Productivity, Investment in ICT and Market Experimentation: Micro Evidence from Germany and the U.S," Working Papers 03-06, Center for Economic Studies, U.S. Census Bureau.
  8. Andrea Bassanini & Stefano Scarpetta, 2001. "Does Human Capital Matter for Growth in OECD Countries?: Evidence from Pooled Mean-Group Estimates," OECD Economics Department Working Papers 282, OECD Publishing.
  9. Alain de Serres, 2003. "Structural Policies and Growth: A Non-Technical Overview," OECD Economics Department Working Papers 355, OECD Publishing.
  10. Christopher Gust & Jaime Marquez, 2002. "International comparisons of productivity growth: the role of information technology and regulatory practices," International Finance Discussion Papers 727, Board of Governors of the Federal Reserve System (U.S.).
  11. Dale W. Jorgenson, 2007. "Information Technology and the G7 Economies," NBER Chapters, in: Hard-to-Measure Goods and Services: Essays in Honor of Zvi Griliches, pages 325-350 National Bureau of Economic Research, Inc.
  12. Nicola Brandt, 2004. "Business Dynamics in Europe," OECD Science, Technology and Industry Working Papers 2004/1, OECD Publishing.
  13. Dirk Pilat & Paul Schreyer, 2004. "The OECD Productivity Database: An Overview," International Productivity Monitor, Centre for the Study of Living Standards, vol. 8, pages 59-65, Spring.
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Cited by:
  1. Centre for the Study of Living Standards, 2005. "What Explains the Canada-US ICT Investment Intensity Gap?," CSLS Research Reports 2005-06, Centre for the Study of Living Standards.
  2. Marcello M. Estevão & Evridiki Tsounta, 2010. "Canada's Potential Growth," IMF Working Papers 10/13, International Monetary Fund.

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