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Has Trend Productivity Growth Increased in Canada?

Author

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  • Benoît Robidoux
  • Bing-Sun Wong

Abstract

Trend productivity growth is a crucial determinant of future living standards as well as fiscal balances. In this article, Benoit Robidoux and Bing-Sun Wong from Finance Canada examine the issue of whether trend productivity growth has increased in Canada and conclude that in fact it has. If correct, this is indeed a very positive development for Canadians. They point out that business sector output per hour growth in Canada accelerated 0.9 percentage points from 1.1 per cent per year in the 1988-1996 period to 2.0 per cent in 1996-2001, virtually the same acceleration as in the United States. The authors find that Canada experienced a greater pick-up in total factor productivity growth than the United States. Increased production and use of information and communications technologies (ICTs) accounted for more of the U.S. productivity growth acceleration.

Suggested Citation

  • Benoît Robidoux & Bing-Sun Wong, 2003. "Has Trend Productivity Growth Increased in Canada?," International Productivity Monitor, Centre for the Study of Living Standards, vol. 6, pages 47-55, Spring.
    • Handle: RePEc:sls:ipmsls:v:6:y:2003:4
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    File URL: http://www.csls.ca/ipm/6/robidoux-wong-f.pdf
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    References listed on IDEAS

    as
    1. Dale W. Jorgenson & Mun S. Ho & Kevin J. Stiroh, 2006. "Projecting Productivity Growth: Lessons from the US Growth Resurgence," Chapters, in: Dennis W. Jansen (ed.), The New Economy and Beyond, chapter 2, Edward Elgar Publishing.
    2. Dale W. Jorgenson & Kevin J. Stiroh, 2000. "Raising the Speed Limit: U.S. Economic Growth in the Information Age," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 31(1), pages 125-236.
    3. Dale W. Jorgenson & Mun S. Ho & Kevin J. Stiroh, 2003. "Lessons for Canada from the U.S. Growth Resurgence," International Productivity Monitor, Centre for the Study of Living Standards, vol. 6, pages 3-18, Spring.
    4. Baldwin, John R. Harchaoui, Tarek, 2002. "Productivity Growth in Canada," Productivity Growth in Canada, Statistics Canada, Economic Analysis Division, number stcb6e, March.
    5. anonymous, 2000. "In this issue ..," Manufacturing & Service Operations Management, INFORMS, vol. 2(3), pages 1-1.
    6. anonymous, 2000. "In this issue ..," Manufacturing & Service Operations Management, INFORMS, vol. 2(4), pages 1-1.
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    Citations

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    Cited by:

    1. Peter J. Nicholson, 2003. "The Growth Story: Canada's Long-run Economic Performance and Prospects," International Productivity Monitor, Centre for the Study of Living Standards, vol. 7, pages 3-23, Fall.
    2. van Norden, Simon, 2011. "Current trends in the analysis of Canadian productivity growth," The North American Journal of Economics and Finance, Elsevier, vol. 22(1), pages 5-25, January.
    3. Chee Kong Wong, 2004. "Information Technology, Productivity and Economic Growth in China," Economics Discussion / Working Papers 04-21, The University of Western Australia, Department of Economics.
    4. 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.
    5. Mr. Marcello M. Estevão & Ms. Evridiki Tsounta, 2010. "Canada's Potential Growth: Another Victim of the Crisis?," IMF Working Papers 2010/013, International Monetary Fund.

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    More about this item

    Keywords

    Canada; Productivity; ICT; Information; Communication; Technology; Resurgence; Acceleration; Aggregate; Growth; Accounting; Growth Accounting;
    All these keywords.

    JEL classification:

    • O51 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - U.S.; Canada
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General
    • L86 - Industrial Organization - - Industry Studies: Services - - - Information and Internet Services; Computer Software

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