The Canada-Atlantic Canada Manufacturing Productivity Gap: A Detailed Analysis

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The Canada-Atlantic Canada Manufacturing Productivity Gap: A Detailed Analysis

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Andrew Sharpe ()

Abstract

The objectives of this report are to examine the characteristics of manufacturing in Atlantic Canada and to shed light on the factors behind the productivity gap between Atlantic Canada and Canada in the context of the manufacturing sector. A number of possible factors contributing to the Atlantic Canada-Canada manufacturing productivity gap are examined, including innovative activity, capital intensity, quality of human resources, economies of scale and the seasonality of production. Of these, innovation is found to be the most important. Since research and development activity has been historically much lower in Atlantic Canada relative to Canada, it is possible that the level of technology embedded in the capital stock in Atlantic Canada is much lower than in Canada. In the end four factors are identified as contributing the most to the Atlantic Canada-Canada manufacturing productivity gap, namely less innovative effort, particularly in high-tech industries; fewer economies of scale; lower educational attainment of the workforce; and greater seasonality of production.

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Paper provided by Centre for the Study of Living Standards in its series CSLS Research Reports with number 2003-08.

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Date of creation: Dec 2003
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Handle: RePEc:sls:resrep:0308

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Find related papers by JEL classification:
L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General
O47 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Measurement of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
O30 - Economic Development, Technological Change, and Growth - - Technological Change - - - General
J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
O57 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries
J60 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - General
D24 - Microeconomics - - Production and Organizations - - - Production; Capital and Total Factor Productivity; Capacity

This paper has been announced in the following NEP Reports:

NEP-ALL-2004-12-20 (All new papers)
NEP-INO-2004-12-20 (Innovation)

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