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The effect of trade on productivity growth and the demand for skilled workers in Canada

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  • Wulong Gu
  • Lori Whewell Rennison

Abstract

We use an input-output model to examine the effect of trade integration on productivity growth and the demand for skilled workers in Canada for the period 1981-1997. We find that trade integration has a positive effect on both labour productivity and total factor productivity. Labour productivity and total factor productivity grew faster in export and import industries than in the total business sector over this period, and this productivity growth gap has widened over time. Canada is found to have a comparative advantage in capital- and natural-resource-intensive industries, although it has declined over time. We find that trade integration has little effect on the demand for skilled and unskilled workers in Canada.

Suggested Citation

  • Wulong Gu & Lori Whewell Rennison, 2005. "The effect of trade on productivity growth and the demand for skilled workers in Canada," Economic Systems Research, Taylor & Francis Journals, vol. 17(3), pages 279-296.
  • Handle: RePEc:taf:ecsysr:v:17:y:2005:i:3:p:279-296
    DOI: 10.1080/09535310500221815
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    Cited by:

    1. repec:bla:revinw:v:63:y:2017:i::p:s113-s133 is not listed on IDEAS
    2. Gulay Gunluk-Senesen & Umit Senesen, 2011. "Decomposition Of Labour Demand By Employer Sectors And Gender: Findings For Major Exporting Sectors In Turkey," Economic Systems Research, Taylor & Francis Journals, vol. 23(2), pages 233-253.

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    Keywords

    Trade; productivity; skills; comparative advantage;

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