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A Detailed Analysis of the Productivity Performance of the Canadian Food Manufacturing Subsector

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  • Chris Ross

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    Abstract

    This report analyzes labour productivity, multifactor productivity and input trends in Canadian food manufacturing since 1961, with a focus on the entire time period and developments since 2000. It is found that the subsector experienced labour productivity growth stronger than the business sector over both the long and short term, but has outperformed manufacturing only in the more recent period. Labour productivity growth is decomposed into capital intensity and multifactor productivity growth, which are found to have contributed to growth almost equally, and labour composition growth accounted for less than 15 per cent over the 1961-2007 period. Underlying drivers of growth are identified and trends in technology, capacity utilization, human capital, economies of scale, machinery and equipment, international trade, and regulation are explored. Policy implications for fostering labour productivity growth based on the drivers are outlined. Finally, a conclusion summarizes the key findings of the paper.

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    Bibliographic Info

    Paper provided by Centre for the Study of Living Standards in its series CSLS Research Reports with number 2011-07.

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    Date of creation: Aug 2011
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    Handle: RePEc:sls:resrep:1107

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    Keywords: labour productivity; multifactor productivity; input trends; food manufacturing; capital intensity; multifactor productivity growth; labour composition;

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    1. Jean-Philippe Gervais & Olivier Bonroy & Steve Couture, 2008. "A province-level analysis of economies of scale in Canadian food processing," Agribusiness, John Wiley & Sons, Ltd., vol. 24(4), pages 538-556.
    2. Gervais, Jean-Philippe & Bonroy, Olivier & Couture, Steve, 2006. "Economies of Scale in the Canadian Food Processing Industry," MPRA Paper 64, University Library of Munich, Germany.
    3. Maynard, Jean-Pierre, 2005. "Annual Measure of the Volume of Work Consistent with the SNA: The Canadian Experience," Economic Analysis Methodology Paper Series: National Accounts 2005005e, Statistics Canada, Economic Analysis.
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    6. Jack M. Mintz, 2007. "2007 Tax Competitiveness Report: A Call for Comprehensive Tax Reform," C.D. Howe Institute Commentary, C.D. Howe Institute, issue 254, September.
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    11. Sabourin, David & Baldwin, John R., 2002. "Enhancing Food Safety and Productivity: Technology Use in the Canadian Food Processing Industry," Analytical Studies Branch Research Paper Series 2002168e, Statistics Canada, Analytical Studies Branch.
    12. Jeffrey I. Bernstein & Theofanis P. Mamuneas, 2007. "Public Infrastructure, Input Efficiency and Productivity Growth in the Canadian Food Processing Industry," Working Papers 0703, Florida International University, Department of Economics.
    13. Jianmin Tang & Weimin Wang, 2004. "Sources of aggregate labour productivity growth in Canada and the United States," Canadian Journal of Economics, Canadian Economics Association, vol. 37(2), pages 421-444, May.
    14. Andrew Sharpe & Jean-Francois Arsenault, 2009. "New Estimates of Multifactor Productivity Growth for the Canadian Provinces," International Productivity Monitor, Centre for the Study of Living Standards, vol. 18, pages 25-37, Spring.
    15. Adams, Wendi L. & Love, H. Alan & Capps, Oral, Jr., 1997. "Structural Analysis Of Mergers And Acquisitions In The Food Industry," Journal of Food Distribution Research, Food Distribution Research Society, vol. 28(2), July.
    16. Bart van Ark, 2002. "Understanding Productivity and Income Differentials Among OECD Countries: A Survey," The Review of Economic Performance and Social Progress, in: Andrew Sharpe, Executive Director & France St-Hilaire, Vice-President , Research & Keith Banting, Di (ed.), The Review of Economic Performance and Social Progress 2002: Towards a Social Understanding of Productivity, volume 2 Centre for the Study of Living Standards & The Institutute for Research on Public Policy.
    17. Jean-Francois Arsenault & Andrew Sharpe, 2008. "An Analysis of the Causes of Weak Labour Productivity Growth in Canada since 2000," International Productivity Monitor, Centre for the Study of Living Standards, vol. 16, pages 14-39, Spring.
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