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Has Trend Productivity Growth Increased in Canada?

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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.

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Bibliographic Info

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

Volume (Year): 6 (2003)
Issue (Month): (Spring)
Pages: 47-55

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Handle: RePEc:sls:ipmsls:v:6:y:2003:4

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Keywords: Canada; Productivity; ICT; Information; Communication; Technology; Resurgence; Acceleration; Aggregate; Growth; Accounting; Growth Accounting;

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References

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  1. anonymous, 2000. "In this issue ..," Manufacturing & Service Operations Management, INFORMS, vol. 2(4), pages v-vii.
  2. Dale W. Jorgenson & Kevin J. Stiroh, 2000. "Raising the Speed Limit: US Economic Growth in the Information Age," OECD Economics Department Working Papers 261, OECD Publishing.
  3. anonymous, 2000. "In this issue ..," Manufacturing & Service Operations Management, INFORMS, vol. 2(3), pages i-ii.
  4. 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.
  5. Dale W. Jorgenson & Mun S. Ho & Kevin J. Stiroh, 2002. "Projecting productivity growth: lessons from the U.S. growth resurgence," Economic Review, Federal Reserve Bank of Atlanta, issue Q3, pages 1-13.
  6. Baldwin, John R. & Harchaoui, Tarek, 2002. "Productivity Growth in Canada," Productivity Growth in Canada, Statistics Canada, Economic Analysis, number stcb6e, December.
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Cited by:
  1. Marcello M. Estevão & Evridiki Tsounta, 2010. "Canada's Potential Growth," IMF Working Papers 10/13, International Monetary Fund.
  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. 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.
  4. 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.
  5. 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.

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