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The Paradox of Market-Oriented Public Policy and Poor Productivity Growth in Canada

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  • Andrew Sharpe

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Abstract

In recent decades, governments in Canada have pursued market-oriented policies at both the macro and micro levels. Economists believe that such policies should foster productivity growth. Since 2000, however, productivity growth in Canada has been dismal, much below that in the United States and below Canada’s historical trend. The objective of this report is to attempt to explain the paradox of productivity-enhancing public policies and the continuation of poor productivity performance. The report finds that the high degree of market orientation of public policy that already exists in Canada suggests that the productivity-enhancing effects of further liberalization may be quite small.

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Bibliographic Info

Paper provided by Centre for the Study of Living Standards in its series CSLS Research Reports with number 2010-01.

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Date of creation: Feb 2010
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Handle: RePEc:sls:resrep:1001

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Related research

Keywords: productivity; labour productivity; output per hour; capital intensity; total factor productivity; Canada; employment;

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Cited by:
  1. Andrew Sharpe, 2010. "Can Sectoral Reallocations of Labour Explain Canada’s Absymal Productivity Performance?," International Productivity Monitor, Centre for the Study of Living Standards, vol. 19, pages 40-49, Spring.

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