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The Impact of the Oil Boom on Canada's Labour Productivity Performance, 2000-2012

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  • Andrew Sharpe
  • Bert Waslander

Abstract

The objective of this article is to evaluate the impact of the oil and gas industry on labour productivity growth in Canada since 2000 through an exploration of the various channels, both direct and indirect, by which the oil and gas sector affects aggregate productivity. The article sheds light on the paradoxical lack of a direct negative contribution of the oil and gas sector to aggregate labour productivity growth despite the very large fall in productivity experienced by the sector. It highlights the divergent productivity growth paths for the oil and gas sectors in Alberta and Newfoundland and Labrador, which drove the aggregate productivity performance of these two provinces. The article also discusses how developments in the oil and gas industry, notably the increase in the price and production of petroleum, have affected productivity growth in other parts of the economy.

Suggested Citation

  • Andrew Sharpe & Bert Waslander, 2014. "The Impact of the Oil Boom on Canada's Labour Productivity Performance, 2000-2012," International Productivity Monitor, Centre for the Study of Living Standards, vol. 27, pages 40-63, Fall.
    • Handle: RePEc:sls:ipmsls:v:27:y:2014:7
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    File URL: http://www.csls.ca/ipm/27/27-csls.pdf
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    References listed on IDEAS

    as
    1. Peter S. Spiro, 2013. "A Sectoral Analysis of Ontario's Weak Productivity Growth," International Productivity Monitor, Centre for the Study of Living Standards, vol. 25, pages 20-35, Fall.
    2. Michel Beine & Serge Coulombe & Wessel N. Vermeulen, 2015. "Dutch Disease and the Mitigation Effect of Migration: Evidence from Canadian Provinces," Economic Journal, Royal Economic Society, vol. 125(589), pages 1574-1615, December.
    3. Ricardo de Avillez, 2012. "Sectoral Contributions to Labour Productivity Growth: Does the Choice of Decomposition Formula Matter?," CSLS Research Reports 2012-09, Centre for the Study of Living Standards.
    4. Someshwar Rao & Jiang Li, 2013. "Explaining Slower Productivity Growth: The Role of Weak Demand Growth," International Productivity Monitor, Centre for the Study of Living Standards, vol. 26, pages 3-19, Fall.
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    Citations

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    Cited by:

    1. John R. Baldwin & Michael Willox, 2016. "The Industry Origins of Canada's Weaker Labour Productivity Performance and the Role of Structural Adjustment in the Post-2000 Period," International Productivity Monitor, Centre for the Study of Living Standards, vol. 31, pages 19-36, Fall.
    2. Nancy Olewiler, 2017. "Canada’s dependence on natural capital wealth: Was Innis wrong?," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 50(4), pages 927-964, November.
    3. Evan Capeluck, 2016. "A Comparison of Australian and Canadian Productivity Performance: Lessons for Canada," CSLS Research Reports 2016-07, Centre for the Study of Living Standards.
    4. Matthew Calver and Alexander Murray, 2016. "Decomposing Multifactor Productivity Growth in Canada by Industry and Province, 1997-2014," CSLS Research Reports 2016-19, Centre for the Study of Living Standards.
    5. Evan Capeluck, 2016. "A Comparison of Productivity Developments in Canada and Australia: Lessons for Canada," International Productivity Monitor, Centre for the Study of Living Standards, vol. 30, pages 43-63, Spring.

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    More about this item

    Keywords

    Canada; Oil Boom; Oil; Natural Gas; Energy Sector; Labour Productivity; Dutch Disease; Alberta; Newfoundland; Labrador; Oil and Gas Industry; Productivity Growth; Productivity;
    All these keywords.

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • O51 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - U.S.; Canada
    • N72 - Economic History - - Economic History: Transport, International and Domestic Trade, Energy, and Other Services - - - U.S.; Canada: 1913-
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • N92 - Economic History - - Regional and Urban History - - - U.S.; Canada: 1913-

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