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A Detailed Analysis of Productivity Trends in the Canadian Forest Products Sector

Author

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  • Ricardo de Avillez

Abstract

The Canadian forest products sector has had an above-average productivity performance in the 2000-2012 period, driven in particular by the wood product manufacturing subsector. While the forestry and logging subsector has also benefited from strong productivity gains, the productivity performance of the paper manufacturing subsector has been far from impressive, especially in the post-2008 period. This report provides a detailed analysis of output, input and productivity trends in the Canadian forest products sector. It also looks at the key drivers of productivity in the sector, investigating potential barriers to productivity growth and discussing policies that could enable faster growth. Given the increasing role of countries with low-labour costs in several forest product markets, maintaining robust productivity growth is an imperative for the Canadian forest products sector if it wants to remain competitive internationally. In this sense, the report recommends renewed focus on human and physical capital investment, as well as on R&D spending.

Suggested Citation

  • Ricardo de Avillez, 2014. "A Detailed Analysis of Productivity Trends in the Canadian Forest Products Sector," CSLS Research Reports 2014-01, Centre for the Study of Living Standards.
  • Handle: RePEc:sls:resrep:1401
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    References listed on IDEAS

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    Cited by:

    1. Evan Capeluck & Jasmin Thomas, 2015. "A Detailed Analysis of Productivity Trends in the Forest Products Sector in Ontario, 2000-2013: Sunset Industry or Industry in Transition?," CSLS Research Reports 2015-06, Centre for the Study of Living Standards.
    2. MahdaviMazdeh, Hossein & Saunders, Chad & Hawkins, Richard William & Dewald, Jim, 2021. "Reconsidering the dynamics of innovation in the natural resource industries," Resources Policy, Elsevier, vol. 72(C).
    3. Evan Capeluck, 2016. "A Comparison of Australian and Canadian Productivity Performance: Lessons for Canada," CSLS Research Reports 2016-07, Centre for the Study of Living Standards.
    4. Don Drummond & Evan Capeluck & Matthew Calver, 2015. "The Key Challenge for Canadian Public Policy: Generating Inclusive and Sustainable Economic Growth," CSLS Research Reports 2015-11, Centre for the Study of Living Standards.
    5. Evan Capeluck, 2015. "Explanations of the Decline in Manufacturing Employment in Canada," CSLS Research Reports 2015-17, Centre for the Study of Living Standards.
    6. Jasmin Thomas, 2015. "A Detailed Analysis of Productivity Trends in the Forest Products Sector in Quebec, 2000-2013: Adversity Drives Productivity," CSLS Research Reports 2015-05, Centre for the Study of Living Standards.

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    More about this item

    Keywords

    Productivity; Growth; Forestry; Canada; Research and Development; Capital Intensity; Human Capital; Physical Capital; Wood Product Manufacturing; Paper Manufacuturing; Forest Products Sector;
    All these keywords.

    JEL classification:

    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General
    • O51 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - U.S.; Canada
    • J00 - Labor and Demographic Economics - - General - - - General
    • E23 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Production
    • Q20 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - General
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • J08 - Labor and Demographic Economics - - General - - - Labor Economics Policies

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