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

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Author Info
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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File URL: http://www.bankofcanada.ca/en/res/wp/2008/wp08-4.pdf
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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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Related research
Keywords: Productivity;

Find related papers by JEL classification:
C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data
D24 - Microeconomics - - Production and Organizations - - - Production; Capital and Total Factor Productivity; Capacity
O30 - Economic Development, Technological Change, and Growth - - Technological Change - - - General

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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.:
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This page was last updated on 2009-11-24.

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