Differences in Interprovincial Productivity Levels
AbstractThis study examines provincial differences in productivity (GDP per job) using decomposition and regression analysis. In the first stage of the study, the relative size of productivity differences across provinces is examined. Then, these differences are decomposed into two components - the first is the portion of the difference that arises from industry-mix, and the second is due to "real" productivity differences at the industry level. The paper also examines the contributions of the "new" and "old" economy sectors to differences in provincial productivity. Finally, regression analysis is performed in order to determine the statistical significance of interprovincial productivity differences. The paper finds that British Columbia, Alberta, Saskatchewan, Ontario and Quebec do not differ significantly from another in terms of GDP per job after differences in industry mix are considered. Manitoba and the Atlantic Provinces lag behind the others. Most of the difference in the latter two cases stems from "real" differences at the industry level rather than from the effect of differences in industry mix. The Natural Resources sector plays an important role in bolstering the performance of Alberta and Saskatchewan.
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Bibliographic InfoPaper provided by Statistics Canada, Analytical Studies Branch in its series Analytical Studies Branch Research Paper Series with number 2001180e.
Date of creation: 06 Dec 2001
Date of revision:
Business performance and ownership; Labour; Economic accounts; Regional and urban profiles; Industries; Productivity accounts;
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- Baldwin, John R. Brown, W. Mark Vinodrai, Tara, 2001. "Dynamics of the Canadian Manufacturing Sector in Metropolitan and Rural Regions," Analytical Studies Branch Research Paper Series 2001169e, Statistics Canada, Analytical Studies Branch.
- Baldwin, John R. Harchaoui, Tarek, 2002. "Productivity Growth in Canada," Productivity Growth in Canada, Statistics Canada, Economic Analysis Division, number stcb6e, May.
- Baldwin, John R. Brown, W. Mark Maynard, Jean-Pierre, 2005. "Interprovincial Differences in GDP Per Capita, Labour Productivity and Work Intensity: 1990-2003," Insights on the Canadian Economy 2005011e, Statistics Canada, Economic Analysis Division.
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