IDEAS home Printed from
   My bibliography  Save this article

Industry Mix, Plant Turnover and Productivity Growth: A Case Study of the Transportation Equipment Industry in Canada


  • Kelvin Chan


  • Jianmin Tang


  • Wulong Gu



The transportation equipment industry is one of the few Canadian industries that is as productive as its U.S. counterpart. However, labour productivity growth in the Canadian transportation equipment industry declined from 4.5 per cent per year in 1981-2000 to 1.7 per cent per year in 2000-2007. This article investigates whether restructuring and the reallocation of output and resources within the industry after 2000 contributed to this decline. It shows that the dramatic decline in productivity growth was mainly due to the slowdown in productivity growth in sub-industries, which can largely be traced to the decline in labour productivity growth of continuing plants. Finally, the article shows that even if the Canadian industry mix were the same as the U.S. mix, the productivity growth profile of the Canadian transportation equipment industry would not change.

Suggested Citation

  • Kelvin Chan & Jianmin Tang & Wulong Gu, 2011. "Industry Mix, Plant Turnover and Productivity Growth: A Case Study of the Transportation Equipment Industry in Canada," International Productivity Monitor, Centre for the Study of Living Standards, vol. 21, pages 24-47, Spring.
  • Handle: RePEc:sls:ipmsls:v:21:y:2011:2

    Download full text from publisher

    File URL:
    Download Restriction: no

    References listed on IDEAS

    1. Baldwin, John R. & Gu, Wulong, 2004. "Industrial Competition, Shifts in Market Share and Productivity Growth," Economic Analysis (EA) Research Paper Series 2004021e, Statistics Canada, Analytical Studies Branch.
    Full references (including those not matched with items on IDEAS)


    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.

    Cited by:

    1. Liu, Huju & Tang, Jianmin, 2017. "Age-productivity profiles of entrants and exits: evidence from Canadian manufacturing," Structural Change and Economic Dynamics, Elsevier, vol. 40(C), pages 26-36.

    More about this item


    transportation; industry; restructuring; reallocation; productivity growth; continuing plants;

    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • L62 - Industrial Organization - - Industry Studies: Manufacturing - - - Automobiles; Other Transportation Equipment; Related Parts and Equipment


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sls:ipmsls:v:21:y:2011:2. 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: (CSLS). General contact details of provider: .

    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 CitEc recognized a reference but did not link an item in RePEc 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 RePEc Author Service 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.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.