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Renewing Canada's Manufacturing Economy: A Regional Comparison, 1973‐1996

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  • MARK BROWN

Abstract

ABSTRACT Regional economies are continually undergoing adjustment as their firm populations react to changing tastes, technologies, and the challenges of outside competition. Adjustment typically takes place as the stock of jobs is renewed in each industry. This micro‐dynamic process of renewal has a substantial impact on the structure of national and regional economies. The primary objective of this paper is to measure the degree of renewal within the Canadian manufacturing economy as whole and within individual provinces. Using a longitudinal micro‐data set—which covers the population of manufacturing plants in Canada from 1973 to 1996—the study shows that the manufacturing sector experienced considerable job renewal. Two‐thirds of jobs in 1996 were newly created since 1973. There was considerable variation in provincial renewal rates. A decomposition analysis suggests this variation is not purely an artifact of the types of industries found in provinces, but reflects other characteristics of provincial economies.

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  • Mark Brown, 2005. "Renewing Canada's Manufacturing Economy: A Regional Comparison, 1973‐1996," Growth and Change, Wiley Blackwell, vol. 36(2), pages 220-243, June.
    • Handle: RePEc:bla:growch:v:36:y:2005:i:2:p:220-243
    DOI: 10.1111/j.1468-2257.2005.00275.x
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    References listed on IDEAS

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    1. Baldwin, John R. Brown, W. Mark, 2004. "Four Decades of Creative Destruction: Renewing Canada's Manufacturing Base from 1961-1999," Insights on the Canadian Economy 2004008e, Statistics Canada, Economic Analysis Division.
    2. Davis, Steven J & Haltiwanger, John & Schuh, Scott, 1996. "Small Business and Job Creation: Dissecting the Myth and Reassessing the Facts," Small Business Economics, Springer, vol. 8(4), pages 297-315, August.
    3. Lucia Foster & John C. Haltiwanger & C. J. Krizan, 2001. "Aggregate Productivity Growth: Lessons from Microeconomic Evidence," NBER Chapters, in: New Developments in Productivity Analysis, pages 303-372, National Bureau of Economic Research, Inc.
    4. John R. Baldwin & Wulong Gu, 2006. "Plant turnover and productivity growth in Canadian manufacturing," Industrial and Corporate Change, Oxford University Press, vol. 15(3), pages 417-465, June.
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    Cited by:

    1. Mario Polèse & Richard Shearmur, 2006. "Growth and Location of Economic Activity: The Spatial Dynamics of Industries in Canada 1971–2001," Growth and Change, Wiley Blackwell, vol. 37(3), pages 362-395, September.
    2. Cédric Brunelle, 2013. "The Growing Economic Specialization of Cities: Disentangling Industrial and Functional Dimensions in the Canadian Urban System, 1971–2006," Growth and Change, Wiley Blackwell, vol. 44(3), pages 443-473, September.

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