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


  • Colin Busby

    (C.D. Howe Institute)

  • William B.P. Robson

    (C.D. Howe Institute)


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

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    References listed on IDEAS

    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.
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    More about this item


    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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