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Product Market Competition, Skill Shortages and Productivity: Evidence from Canadian Manufacturing Firms

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  • Jianmin Tang

  • Weimin Wang

Abstract

In this paper, we estimate the impacts of product market competition and skill shortages on the productivity level performance of Canadian manufacturing firms. We use firms’ perceptions of their competitive environment from the Statistics Canada 1999 Survey of Innovation to measure product market competition and skill shortages. We argue in the paper that such perceptions are important for productivity level performance. After controlling for other factors, we find that product market competition has a positive impact on the performance of medium-sized and large-sized firms, and that skill shortages have a negative impact on the performance of small-sized and medium-sized firms. Copyright Springer Science+Business Media, Inc. 2005

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  • Jianmin Tang & Weimin Wang, 2005. "Product Market Competition, Skill Shortages and Productivity: Evidence from Canadian Manufacturing Firms," Journal of Productivity Analysis, Springer, vol. 23(3), pages 317-339, July.
    • Handle: RePEc:kap:jproda:v:23:y:2005:i:3:p:317-339
    DOI: 10.1007/s11123-005-2213-y
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    References listed on IDEAS

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    1. Someshwar Rao & Jianmin Tang & Weimin Wang, 2002. "The Importance of Skills for Innovation and Productivity," International Productivity Monitor, Centre for the Study of Living Standards, vol. 4, pages 15-26, Spring.
    2. Jean O. Lanjouw & Mark Schankerman, 1999. "The Quality of Ideas: Measuring Innovation with Multiple Indicators," NBER Working Papers 7345, National Bureau of Economic Research, Inc.
    3. Zhang, Xuelin & Morissette, Rene, 2001. "Which Firms Have High Job Vacancy Rates in Canada?," Analytical Studies Branch Research Paper Series 2001176e, Statistics Canada, Analytical Studies Branch.
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