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Productivity in Canada: Does Firm Size Matter?

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Abstract

The research findings highlighted in this article suggest that firm-size differences play a significant role in explaining the productivity gap between Canada and the United States. The authors review factors that lead to a positive relationship between productivity and size and then look at Canadian evidence of this relationship at the firm level. They quantify the extent to which the change in Canadian productivity as well as the Canada-U.S. productivity differences can be accounted for by the change in the importance of large firms and identify several factors that play a role in determining average firm size and aggregate productivity.

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  • Danny Leung & Césaire Meh & Yaz Terajima, 2008. "Productivity in Canada: Does Firm Size Matter?," Bank of Canada Review, Bank of Canada, vol. 2008(Autumn), pages 7-16.
  • Handle: RePEc:bca:bcarev:v:2008:y:2008:i:autumn08:p:7-16
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    Cited by:

    1. Amit Basole & Deepankar Basu & Rajesh Bhattacharya, 2014. "Determinants and Impact of Subcontracting: Evidence from India’s Informal Manufacturing Sector," UMASS Amherst Economics Working Papers 2014-04, University of Massachusetts Amherst, Department of Economics.
    2. Pierre St-Amant & David Tessier, 2018. "Firm Dynamics and Multifactor Productivity: An Empirical Exploration," Staff Working Papers 18-15, Bank of Canada.
    3. repec:eee:dyncon:v:85:y:2017:i:c:p:46-58 is not listed on IDEAS
    4. Hien Thu Pham & Shino Takayama, 2017. "Revisiting the “Missing Middle†: Productivity Analysis," Discussion Papers Series 580, School of Economics, University of Queensland, Australia.
    5. Cassey Lee, . "The Exporting and Productivity Nexus: Does Firm Size Matter?," Chapters, Economic Research Institute for ASEAN and East Asia (ERIA).
    6. Andrew Sharpe, 2015. "Ontario's Productivity Performance, 2000-2012: A Detailed Analysis," CSLS Research Reports 2015-04, Centre for the Study of Living Standards.
    7. Mark Parsons, 2011. "Rewarding Innovation: Improving Federal Tax Support for Business R&D in Canada," C.D. Howe Institute Commentary, C.D. Howe Institute, issue 334, September.
    8. Machek Ondrej, 2012. "Data Issues In Total Factor Productivity Benchmarking: A Central European Perspective," Annals of Faculty of Economics, University of Oradea, Faculty of Economics, vol. 1(2), pages 219-225, December.
    9. Dhritiman Bhattacharya, 2011. "Distortions, Endogenous Managerial Skills and Productivity Differences," 2011 Meeting Papers 570, Society for Economic Dynamics.
    10. Stefano Costa & Federico Sallusti & Claudio Vicarelli & Davide Zurlo, 2017. "To The Threshold And Beyond: Size, Productivity And (Scale) Barriers To Export," Working Papers LuissLab 17132, Dipartimento di Economia e Finanza, LUISS Guido Carli.
    11. Hien Thu Pham & Shino Takayama, 2017. "Firm Size Distribution, Production Efficiency, and Returns to Scale: A Stochastic Frontier Approach," Discussion Papers Series 581, School of Economics, University of Queensland, Australia.
    12. Amit Basole & Deepankar Basu & Rajesh Bhattacharya, 2014. "Determinants and Impact of Subcontracting: Evidence from India’s Informal Manufacturing Sector," Working Papers 2014_08, University of Massachusetts Boston, Economics Department.
    13. Hien Thu Pham & Shino Takayama, 2015. "Revisiting the Missing Middle: Production and Corruption," CEPA Working Papers Series WP022015, School of Economics, University of Queensland, Australia.

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