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The Retooling Challenge: Canada's Struggle to Close the Capital Investment Gap

Author

Listed:
  • Colin Busby

    (C.D. Howe Institute)

  • William B.P. Robson

    (C.D. Howe Institute)

Abstract

Investment in plant and equipment per worker by business in Canada has long lagged that in the United States and other major developed countries, likely contributing to disappointing productivity growth in Canada. Fiscal and regulatory changes that would increase the rewards to investment and enhance competitive pressures to innovate would help ensure that Canadian workers in all provinces have the tools to keep pace with rivals abroad and achieve high and growing incomes in the years ahead.

Suggested Citation

  • Colin Busby & William B.P. Robson, 2011. "The Retooling Challenge: Canada's Struggle to Close the Capital Investment Gap," e-briefs 126, C.D. Howe Institute.
  • Handle: RePEc:cdh:ebrief:126
    as

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    File URL: https://www.cdhowe.org/retooling-challenge-canada%E2%80%99s-struggle-close-capital-investment-gap
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    References listed on IDEAS

    as
    1. Robin Banerjee & William B.P. Robson, 2007. "Give Canadian Workers the Tools to do the Job! Why Canada Needs More Robust Capital Investment," e-briefs 44, C.D. Howe Institute.
    2. Macdonald, Ryan, 2008. "Terms of Trade in Central Canada," Insights on the Canadian Economy 2008022e, Statistics Canada, Economic Analysis Division.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    Fiscal and Tax Competitiveness; Economic Growth and Innovation; Canada; Canadian provinces; business investment; capital spending; new investment per worker; OECD countries;

    JEL classification:

    • E20 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - General (includes Measurement and Data)

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