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Future Productivity Growth in Canada: Comparing to the United States

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  • Tiff Macklem

Abstract

In this second contribution to the Symposium included in this volume on Future Productivity in Canada, Tiff Macklem of the Bank of Canada compares sources of recent productivity growth in Canada and the United States. Macklem sees aggregate labour productivity growth in Canada advancing at around a 2 per cent average annual rate in the medium term. This view is based on the increased share of machinery and equipment investment in GDP, Canada's high degree of exposure to international trade and investment, the supportive macro-economic environment of low inflation and improved fiscal positions, increased spillovers from rapid and sustained U.S. productivity growth, and the significant gap between Canadian and U.S. productivity levels, which suggests potential for catch-up.

Suggested Citation

  • Tiff Macklem, 2003. "Future Productivity Growth in Canada: Comparing to the United States," International Productivity Monitor, Centre for the Study of Living Standards, vol. 7, pages 50-57, Fall.
    • Handle: RePEc:sls:ipmsls:v:7:y:2003:6
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    References listed on IDEAS

    as
    1. Dhaliwal, Naginder & Baldwin, John R., 2000. "Labour Productivity Differences Between Domestic and Foreign-controlled Establishments in the Canadian Manufacturing Sector," Analytical Studies Branch Research Paper Series 2000118e, Statistics Canada, Analytical Studies Branch.
    2. Surendra Gera & Wulong Wu & Frank C. Lee, 1999. "Information technology and productivity growth: an empirical analysis for Canada and the United States," Canadian Journal of Economics, Canadian Economics Association, vol. 32(2), pages 384-407, April.
    3. Baldwin, John R. Gu, Wulong, 2003. "Participation in Export Markets and Productivity Performance in Canadian Manufacturing," Economic Analysis (EA) Research Paper Series 2003011e, Statistics Canada, Analytical Studies Branch.
    4. Allan Crawford, 2002. "Trends in Productivity Growth in Canada," Bank of Canada Review, Bank of Canada, vol. 2002(Spring), pages 19-32.
    5. Sabourin, David & Baldwin, John R., 1999. "Technology Adoption: A Comparison Between Canada and the United States," Analytical Studies Branch Research Paper Series 1998119e, Statistics Canada, Analytical Studies Branch.
    6. Baldwin, John R. Harchaoui, Tarek, 2002. "Productivity Growth in Canada," Productivity Growth in Canada, Statistics Canada, Economic Analysis Division, number stcb6e, March.
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    Citations

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    Cited by:

    1. Thomas A. Wilson, 2003. "A Perspective on Future Productivity Growth in Canada," International Productivity Monitor, Centre for the Study of Living Standards, vol. 7, pages 46-49, Fall.
    2. Mr. Ayhan Kose & Mr. Roberto Cardarelli, 2004. "Economic Integration, Business Cycle, and Productivity in North America," IMF Working Papers 2004/138, International Monetary Fund.
    3. Jeremy Smith, 2004. "Aggregate Labour Productivity Growth in Canada and the United States: Definitions, Trends and Measurement Issues," CSLS Research Reports 2004-04, Centre for the Study of Living Standards.

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    More about this item

    Keywords

    Canada; Labour Productivity Growth; United States; Machinery; Equipment ; Investment; Human Capital; Growth Accounting; Openness; Trade; Research; Development;
    All these keywords.

    JEL classification:

    • O51 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - U.S.; Canada
    • E66 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - General Outlook and Conditions
    • O57 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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