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A Comparison of Canadian and U.S. Productivity Levels: An Exploration of Measurement Issues

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Author Info
Baldwin, John R.
Maynard, Jean-Pierre
Tanguay, Marc
Wong, Fanny
Yan, Beiling

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Abstract

This paper examines the level of labour productivity in Canada relative to that of the United States in 1999. In doing so, it addresses two main issues. The first is the comparability of the measures of GDP and labour inputs that the statistical agency in each country produces. Second, it investigates how a price index can be constructed to reconcile estimates of Canadian and U.S. GDP per hour worked that are calculated in Canadian and U.S. dollars respectively. After doing so, and taking into account alternative assumptions about Canada/U.S. prices, the paper provides point estimates of Canada's relative labour productivity of the total economy of around 93% that of the United States. The paper points out that at least a 10 percentage point confidence interval should be applied to these estimates. The size of the range is particularly sensitive to assumptions that are made about import and export prices.

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File URL: http://www.statcan.gc.ca/bsolc/olc-cel/olc-cel?catno=11F0027M2005028&lang=eng
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Publisher Info
Paper provided by Statistics Canada, Analytical Studies Branch in its series Economic Analysis (EA) Research Paper Series with number 2005028e.

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Date of creation: 20 Jan 2005
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Handle: RePEc:stc:stcp5e:2005028e

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Related research
Keywords: Statistical methods; Economic accounts; Data analysis; Productivity accounts;

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This paper has been announced in the following NEP Reports: References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. D.J. Daly, 1972. "Uses of International Price and Output Data," NBER Chapters, in: International Comparisons of Prices and Output, pages 85-142 National Bureau of Economic Research, Inc. [Downloadable!]
  2. David Card & Richard B. Freeman, 2002. "What Have Two Decades of British Economic Reform Delivered in Terms of Productivity Growth?," International Productivity Monitor, Centre for the Study of Living Standards, vol. 5, pages 41-52, Fall. [Downloadable!]
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Robert Inklaar & Marcel P. Timmer & Bart van Ark, 2006. "Mind the gap! International comparisons of productivity in services and goods production," Hi-Stat Discussion Paper Series d06-175, Institute of Economic Research, Hitotsubashi University. [Downloadable!]
    Other versions:
  2. Frank T. Denton, 2007. "On the Sensitivity of Aggregate Productivity Growth Rates to Noisy Measurement," Social and Economic Dimensions of an Aging Population Research Papers 192, McMaster University. [Downloadable!]
  3. Maynard, Jean-Pierre, 2007. "A Comparison of GDP Per Capita in Canada and the United States from 1994 to 2005," Insights on the Canadian Economy 2007016e, Statistics Canada, Economic Analysis Division. [Downloadable!]
  4. Andrew Sharpe, 2006. "Lessons for Canada from International Productivity Experience," CSLS Research Reports 2006-02, Centre for the Study of Living Standards. [Downloadable!]
  5. Baldwin, John R. & Maynard, Jean-Pierre & Wong, Fanny, 2005. "The Output Gap Between Canada and the United States: The Role of Productivity (1994-2002)," Insights on the Canadian Economy 2005009e, Statistics Canada, Economic Analysis Division. [Downloadable!]
  6. Andrew Sharpe, 2007. "Three Policies to Improve Productivity Growth in Canada," CSLS Research Reports 2007-05, Centre for the Study of Living Standards. [Downloadable!]
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