Insights from Latin America for Canada: A Review Article on The Age of Productivity: Transforming Economies from the Bottom Up
This review article assesses the edited volume The Age of Productivity: Transforming Economies from the Bottom Up, which addresses the productivity challenges facing Latin America and the Caribbean. The main message of the volume is that a low level of total factor productivity (TFP) and slow TFP growth account for the region's large and growing income gaps relative to developed economies and the emerging East Asian economies. High trade costs, a large credit gap, a complex and ineffective tax system, unintended consequences of SME support programs and social policies, and a large innovation deficit are identified as largely responsible for the region's productivity problems. Given that Canada's productivity challenge is similar to that of Latin America, the article discusses possible policy lessons for Canada from the region's experience.
Volume (Year): 21 (2011)
Issue (Month): (Spring)
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