Industry Mix, Plant Turnover and Productivity Growth: A Case Study of the Electronic and Electrical Product Manufacturing
Labor productivity growth in the Canadian electronic and electrical product manufacturing industry declined, from 21% per year in the period 1997-2000, to negative 4% per year in the period 2000-2006. This paper investigates if the restructuring and the reallocation of market share and resource within the industry following the bursting of the tech bubble in 2000 contributed to the slowdown in productivity growth. The reallocation may be a result of change in the composition of constituent sub-industries (industry mix), the entry of new firms and the exit of existing firms, and/or the growth and decline in continuing firms. This paper discusses that the slowdown in productivity growth in the Canadian electronic and electrical product industry was mainly due to weaker productivity performance of the sub-industries, which can largely be traced to the decline in labor productivity growth of continuing plants. It finds that the reallocation had some impact, but it was not the primary factor behind the decline. Finally, the paper argues that even if the Canadian industry mix were the same as the U.S. industry mix over this period, the productivity growth profile of the Canadian electronic and electrical product manufacturing industry would not change.
Volume (Year): 4 (2012)
Issue (Month): 1 (March)
|Contact details of provider:|| Postal: 1568 Merivale Rd. Suite # 618, Ottawa, Ontario, Canada K2G 5Y7|
When requesting a correction, please mention this item's handle: RePEc:oul:tncr09:v:4:y:2012:i:1:p:11-37. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Denny Liao)or (Jen Ma)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.