Advanced Search
MyIDEAS: Login

The Widening Canada-US Productivity Gap in Manufaturing

Contents:

Author Info

  • Jeffrey I. Bernstein

    ()

  • Richard G. Harris

    ()

  • Andrew Sharpe

    ()

Abstract

In this article, Jeffrey I. Bernstein of Carleton University, Richard G. Harris from Simon Fraser University, and Andrew Sharpe from the Centre for the Study of Living Standards provide a comprehensive analysis of the widening of the Canada-US manufacturing productivity gap. Since 1994, labour productivity growth in manufacturing in the United States has greatly exceeded that recorded in Canada. Output per hour in Canada fell 20 percentage points from 87 per cent of the US level in 1994 to 67 per cent in 2001. This development has been responsible for most of the widening of the aggregate Canada-US labour productivity gap. The authors find that the growth in the gap largely reflects the acceleration of productivity growth in US high-tech manufacturing sector. The Canadian high-sector is smaller than its US counterpart and experienced much weaker productivity growth. It is estimated that these two factors themselves account for 70 per cent of the widening of the gap over the 1994-2000 period. Faster growth in capital intensity of production in the United States also played a complementary role in the growth of the gap, a development in part fostered by the greater increase in the price of labour relative to that of investment goods in the United States than in Canada. This was due to slower labour compensation growth and, to a lesser extent, a smaller decline in the price of investment goods in Canada. The depreciation of the value of the Canadian dollar relative to the US dollar played some role in this latter development. The authors conclude that Canadian economic policies have not directly contributed in any significant manner to the widening of the gap.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://www.csls.ca/ipm/5/mfg-e.pdf
Download Restriction: no

File URL: http://www.csls.ca/ipm/5/mfg-f.pdf
File Function: version en francais, pp:3-24
Download Restriction: no

Bibliographic Info

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

Volume (Year): 5 (2002)
Issue (Month): (Fall)
Pages: 3-22

as in new window
Handle: RePEc:sls:ipmsls:v:5:y:2002:1

Contact details of provider:
Postal: 151 Slater Street, Suite 710, Ottawa, ON K1P 5H3
Phone: 613-233-8891
Fax: 613-233-8250
Email:
Web page: http://www.csls.ca/
More information through EDIRC

Order Information:
Email:
Web: http://www.csls.ca

Related research

Keywords: Canada; United States; Manufacturing; Labor Productivity; Labour Productivity; Productivity; Employment; Capital Intensity; Technological Change; Innovation; High-Tech; Capacity; Cyclical; Investment; Relative Price; Relative Price of Labour; Relative Price of Investment;

Find related papers by JEL classification:

References

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
as in new window
  1. Tang, Jianmin & Baldwin, John R. & Jarmin , Ron S., 2002. "The Trend to Smaller Producers in Manufacturing: A Canada/U.S. Comparison," Economic Analysis (EA) Research Paper Series 2002003e, Statistics Canada, Analytical Studies Branch.
Full references (including those not matched with items on IDEAS)

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. Andrew Sharpe, 2003. "Why are Americans More Productive than Canadians?," International Productivity Monitor, Centre for the Study of Living Standards, vol. 6, pages 19-37, Spring.
  2. Jeremy Smith, 2004. "Aggregate Labour Productivity Growth in Canada and the United States: Definitions, Trends and Measurement Issues," CSLS Research Reports 2004-04, Centre for the Study of Living Standards.
  3. Someshwar Rao & Jianmin Tang & Weimin Wang, 2003. "Canada's Recent Productivity Record and Capital Accumulation," International Productivity Monitor, Centre for the Study of Living Standards, vol. 7, pages 24-38, Fall.
  4. Andrew Sharpe, 2007. "Lessons for Canada from International Productivity Experience," International Productivity Monitor, Centre for the Study of Living Standards, vol. 14, pages 20-37, Spring.
  5. Jeremy Smith, 2004. "Assessing Aggregate Labour Productivity Trends in Canada and the United States: Total Economy versus Business Sector Perspectives," International Productivity Monitor, Centre for the Study of Living Standards, vol. 8, pages 47-58, Spring.
  6. Brown, W. Mark & Gu, Wulong & Baldwin, John R., 2008. "Geographic Market Access and the Effects of Trade on Length of Production Run, Product Diversity and Plant Scale of Canadian Manufacturing Plants, 1974 to 1999," Economic Analysis (EA) Research Paper Series 2008052e, Statistics Canada, Analytical Studies Branch.
  7. Gu, Wulong & Baldwin, John R., 2005. "Global Links: Multinationals, Foreign Ownership and Productivity Growth in Canadian Manufacturing," The Canadian Economy in Transition 2005009e, Statistics Canada, Economic Analysis.
  8. Someshwar Rao & Andrew Sharpe & Jianmin Tang, 2004. "Productivity Growth in Service Industries: A Canadian Success Story," CSLS Research Reports 2004-01, Centre for the Study of Living Standards.
  9. Centre for the Study of Living Standards, 2003. "Productivity Trends in Natural Resources Industries in Canada," CSLS Research Reports 2003-01, Centre for the Study of Living Standards.

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:sls:ipmsls:v:5:y:2002:1. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Whitney Hamilton) The email address of this maintainer does not seem to be valid anymore. Please ask Whitney Hamilton to update the entry or send us the correct address.

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.