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Labour Productivity Differences Between Domestic and Foreign-controlled Establishments in the Canadian Manufacturing Sector

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  • Dhaliwal, Naginder
  • Baldwin, John R.

Abstract

This study uses data to study differences in labour productivity gains across domestic and foreign-controlled establishments in the manufacturing sector for the period 1973 to 1993. In doing so, it also examines the extent to which labour productivity differences exist between small and large establishments and across industry sectors and how they have been changing over time. The analysis consists of three parts. In the first section, the connection between labour usage and output is examined. This analysis investigates differences in marginal labour propensities for the different subgroups in the short and long-run. Here volatility is seen to be lower for foreign-controlled establishments. The second section examines the difference between the growth in average labour productivity for the same groups. Here foreign-controlled establishments are seen to have the highest growth rates. The third section investigates whether any trend can be found in the rates of growth for large and small, domestic and foreign establishments and finds that these differences have been increasing over time.

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Bibliographic Info

Paper provided by Statistics Canada, Analytical Studies Branch in its series Analytical Studies Branch Research Paper Series with number 2000118e.

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Date of creation: 01 Mar 2000
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Handle: RePEc:stc:stcp3e:2000118e

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Web page: http://www.statcan.gc.ca
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Related research

Keywords: Business ownership; Business performance and ownership;

References

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  1. John Haltiwanger & Martin N Baily & Eric J Bartelsman, 1994. "Downsizing and Productivity Growth: Myth or Reality?," Working Papers 94-4, Center for Economic Studies, U.S. Census Bureau.
  2. Baldwin, John R., 1996. "Productivity Growth, Plant Turnover and Restructuring in the Canadian Manufacturing Sector," Analytical Studies Branch Research Paper Series 1995087e, Statistics Canada, Analytical Studies Branch.
  3. Picot, Garnett & Baldwin, John R., 1994. "Employment Generation by Small Producers in the Canadian Manufacturing Sector," Analytical Studies Branch Research Paper Series 1994070e, Statistics Canada, Analytical Studies Branch.
  4. Baldwin, John R. & Raffiquzzaman, Mohammed, 1998. "The Effect of Technology and Trade on Wage Differentials Between Nonproduction and Production Workers in Canadian Manufacturing," Analytical Studies Branch Research Paper Series 1998098e, Statistics Canada, Analytical Studies Branch.
  5. Baldwin,John R. & Gorecki,Paul With contributions by-Name:Caves,Richard E., 1998. "The Dynamics of Industrial Competition," Cambridge Books, Cambridge University Press, number 9780521633574, 9.
  6. Baldwin, John R. & Rafiquzzaman, Mohammed, 1995. "Selection versus evolutionary adaptation: Learning and post-entry performance," International Journal of Industrial Organization, Elsevier, vol. 13(4), pages 501-522, December.
  7. Heckman, James J, 1979. "Sample Selection Bias as a Specification Error," Econometrica, Econometric Society, Econometric Society, vol. 47(1), pages 153-61, January.
  8. Baldwin, John R. & Diverty, Brent, 1995. "Advanced Technology Use in Canadian Manufacturing Establishments," Analytical Studies Branch Research Paper Series 1995085e, Statistics Canada, Analytical Studies Branch.
  9. Sabourin, David & Baldwin, John R. & Diverty, Brent, 1995. "Technology Use and Industrial Transformation: Empirical Perspectives," Analytical Studies Branch Research Paper Series 1995075e, Statistics Canada, Analytical Studies Branch.
  10. David B. Audretsch & A. Roy Thurik, 1999. "Innovation, Industry Evoluation and Employment," Tinbergen Institute Discussion Papers 99-068/3, Tinbergen Institute.
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Citations

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Cited by:
  1. Brown, W. Mark & Baldwin, John R., 2003. "Regional Manufacturing Employment Volatility in Canada: The Effects of Specialization and Trade," Economic Analysis (EA) Research Paper Series 2003005e, Statistics Canada, Analytical Studies Branch.
  2. Rama, Ed & Sabourin, David & Baldwin, John R., 1999. "Growth of Advanced Technology Use in Canadian Manufacturing During the 1990's," Analytical Studies Branch Research Paper Series 1999105e, Statistics Canada, Analytical Studies Branch.
  3. Jianmin Tang & Someshwar Rao, 2003. "Issues and Commentaries Issues et commentaires Are Foreign-Controlled Manufacturing Firms Less R&D-Intensive than Canadian- Controlled Firms?," Canadian Public Policy, University of Toronto Press, vol. 29(1), pages 111-117, March.
  4. Baldwin, John R. & Gellatly, Guy, 2007. "Global Links: Multinationals in Canada: An Overview of Research at Statistics Canada," The Canadian Economy in Transition 2007014e, Statistics Canada, Economic Analysis.
  5. Handy, Charles R. & Bamford, John A., 2000. "Foreign Investment, Competitiveness And Trade," Policy Harmonization and Adjustment in the North American Agricultural and Food Industry; Proceedings of the 5th Agricultural and Food Policy - 1999 16795, Farm Foundation, Agricultural and Food Policy Systems Information Workshops.
  6. Warren, Paul, 2005. "Profitability of Canadian- Versus U.S.-controlled Enterprises," Economic Analysis (EA) Research Paper Series 2005030e, Statistics Canada, Analytical Studies Branch.

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