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Insights into Canada’s Abysmal Post-2000 Productivity Performance from Decompositions of Labour Productivity Growth by Industry and Province

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  • Andrew Sharpe

    ()

  • Eric Thomson

    ()

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    Abstract

    The Centre for the Study of Living Standards has released new estimates of labour, capital and multifactor productivity growth and levels at the market sector, two-digit, and three-digit NAICS industry level for the Canadian provinces during the 1997-2007 period. This article exploits this database to shed light on the nature of the slowdown in labour productivity growth in Canada after 2000. It identifies manufacturing as the sector that has accounted for most of the slowdown. Within manufacturing, transportation equipment and computers and electronics are found to be the industries that accounted for the lion’s share of the sector’s fall-off in labour productivity growth. Ontario was the province that contributed proportionately the most to the slowdown because of the concentration of manufacturing in this province. A fall in manufacturing output growth is identified as the factor most responsible for the decline in productivity growth in the sector.

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    File URL: http://www.csls.ca/ipm/20/IPM-20-Sharpe-Thomson.pdf
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    Bibliographic Info

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

    Volume (Year): 20 (2010)
    Issue (Month): (Fall)
    Pages: 48-67

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    Handle: RePEc:sls:ipmsls:v:20:y:2010:3

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    Related research

    Keywords: labour; capital; multifactor productivity; growth; province; industry; manufacturing;

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    1. Jianmin Tang & Weimin Wang, 2004. "Sources of aggregate labour productivity growth in Canada and the United States," Canadian Journal of Economics, Canadian Economics Association, vol. 37(2), pages 421-444, May.
    2. John S. L. McCombie & Mark Roberts, 2007. "Returns To Scale And Regional Growth: The Static-Dynamic Verdoorn Law Paradox Revisited," Journal of Regional Science, Wiley Blackwell, vol. 47(2), pages 179-208.
    3. Alvaro Angeriz & John McCombie & Mark Roberts, 2008. "Returns to Scale for EU Regional Manufacturing," Working Papers 20, Queen Mary, University of London, School of Business and Management, Centre for Globalisation Research.
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