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Insights from Latin America for Canada: A Review Article on The Age of Productivity: Transforming Economies from the Bottom Up

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  • Someshwar Rao

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    Abstract

    This review article assesses the edited volume The Age of Productivity: Transforming Economies from the Bottom Up, which addresses the productivity challenges facing Latin America and the Caribbean. The main message of the volume is that a low level of total factor productivity (TFP) and slow TFP growth account for the region's large and growing income gaps relative to developed economies and the emerging East Asian economies. High trade costs, a large credit gap, a complex and ineffective tax system, unintended consequences of SME support programs and social policies, and a large innovation deficit are identified as largely responsible for the region's productivity problems. Given that Canada's productivity challenge is similar to that of Latin America, the article discusses possible policy lessons for Canada from the region's experience.

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    File URL: http://www.csls.ca/ipm/21/IPM-21-Rao.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): 21 (2011)
    Issue (Month): (Spring)
    Pages: 70-81

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    Handle: RePEc:sls:ipmsls:v:21:y:2011:4

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    Related research

    Keywords: total factor productivity; growth; Latin America; Caribbean; Canada;

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    1. Someshwar Rao & Jianmin Tang & Weimin Wang, 2008. "What Explains the Canada-US Labour Productivity Gap?," Canadian Public Policy, University of Toronto Press, vol. 34(2), pages 163-192, June.
    2. John R. Baldwin & Wulong Gu, 2011. "Firm dynamics and productivity growth: a comparison of the retail trade and manufacturing sectors," Industrial and Corporate Change, Oxford University Press, vol. 20(2), pages 367-395, April.
    3. Gu, Wulong & Baldwin, John R., 2003. "Plant Turnover and Productivity Growth in Canadian Manufacturing," Analytical Studies Branch Research Paper Series 2003193e, Statistics Canada, Analytical Studies Branch.
    4. Timmer,Marcel P. & Inklaar,Robert & O'Mahony,Mary & Ark,Bart van, 2013. "Economic Growth in Europe," Cambridge Books, Cambridge University Press, number 9781107412446, October.
    5. Danny Leung & Césaire Meh & Yaz Terajima, 2008. "Firm Size and Productivity," Working Papers 08-45, Bank of Canada.
    6. Mika Maliranta & Petri Rouvinen & Pekka Ylä-Anttila, 2010. "Finland’s Path to the Global Productivity Frontier through Creative Destruction," International Productivity Monitor, Centre for the Study of Living Standards, vol. 20, pages 68-84, Fall.
    7. John R. Baldwin & Ron S. Jarmin & Jianmin Tang, 2004. "Small North American Producers Give Ground in the 1990s," Small Business Economics, Springer, vol. 23(4), pages 349-361, November.
    8. Gu, Wulong & Baldwin, John R., 2009. "Productivity Performance in Canada, 1961 to 2008: An Update on Long-term Trends," The Canadian Productivity Review 2009025e, Statistics Canada, Economic Analysis.
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