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What Affects MFP in the Long-Run? Evidence from Canadian Industries

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  • Danny Leung
  • Yi Zheng

Abstract

In this paper we explore variables that may have an impact on multifactor productivity (MFP) in the long-run using the KLEMS database for Canada. We estimate a dynamic heterogeneous panel error-correction model of twelve 2-digit level industries. Variables investigated include ICT capital, outsourcing, competition, trade openness, public infrastructure, and R&D. Results suggest that over the 1976 - 2003 period ICT capital services, outsourcing and trade all had a positive impact on the level of industry MFP. The speed of adjustment varies significantly by industry.

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Bibliographic Info

Paper provided by Bank of Canada in its series Working Papers with number 08-4.

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Length: 41 pages
Date of creation: 2008
Date of revision:
Handle: RePEc:bca:bocawp:08-4

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Keywords: Productivity;

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