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The Importance of Entry to Canadian Manufacuring, with an Appendix on Measurement Issues

  • John R. Baldwin
  • Desmond Beckstead
  • Andrée Girard

Understanding the importance of the dynamic entry process in the Canadian economy involves measuring size of entry. The main purpose of this paper is to summarise the information that we have on the amount of entry in Canada. The paper also fulfils another purpose. Some studies have focused on cross-country comparisons (Geroski and Schwalbach, 1991: OECD, 2001). Interpretation of the results of these studies is difficult unless methodological issues regarding how entry is measured are addressed. Without an understanding of the extent to which different databases produce different results, international comparisons are difficult to evaluate. Cross-country comparisons that are derived from extremely different data sources may be misleading because of the lack of comparability. Since there is more than one reliable database that can be used to estimate entry in Canada, this paper asks how measured entry rates vary across different Canadian databases. By examining the difference in entry ... L'importance de l'entrée dans le secteur canadien de la fabrication, document accompagné d'une annexe sur les questions de mesure Il faut mesurer l’étendue de l’entrée dans l’économie canadienne pour comprendre l’importance du processus dynamique d’entrée à l’intérieur de cette économie. Le présent document a principalement pour objectif de résumer l’information dont nous disposons sur l’envergure de l’entrée dans l’économie au Canada. Il réalise également un autre objectif. Certaines études sont axées sur des comparaisons entre pays (Geroski et Schwalbach, 1991; OCDE, 2001). Il est difficile d’interpréter les résultats de ces études à moins d’aborder des questions méthodologiques qui se rattachent à la façon de mesurer l’entrée dans l’économie. Il est également difficile d’évaluer des comparaisons au niveau international si l’on ne comprend pas à quel point des bases de données différentes produisent des résultats différents. Les comparaisons entre pays établies à partir de sources de données extrêmement différentes peuvent être trompeuses en raison de leur manque de comparabilité. Parce qu’il existe plus ...

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Paper provided by OECD Publishing in its series OECD Science, Technology and Industry Working Papers with number 2002/3.

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Date of creation: 27 Feb 2002
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Handle: RePEc:oec:stiaaa:2002/3-en
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  1. John Baldwin & Timothy Dunne & John Haltiwanger, 1998. "A Comparison Of Job Creation And Job Destruction In Canada And The United States," The Review of Economics and Statistics, MIT Press, vol. 80(3), pages 347-356, August.
  2. Baldwin, John R. & Rafiquzzaman, Mohammed, 1995. "Selection versus evolutionary adaptation: Learning and post-entry performance," International Journal of Industrial Organization, Elsevier, vol. 13(4), pages 501-522, December.
  3. Pakes, Ariel & Ericson, Richard, 1998. "Empirical Implications of Alternative Models of Firm Dynamics," Journal of Economic Theory, Elsevier, vol. 79(1), pages 1-45, March.
  4. Baldwin, John R. & Bian, Lin & Dupuy, Richard & Gellatly, Guy, 2000. "Failure Rates for New Canadian Firms: New Perspectives on Entry and Exit," Failure Rates for New Canadian Firms: New Perspectives on Entry and Exit, Statistics Canada, Economic Analysis, number stcb5e, December.
  5. repec:cup:cbooks:9780521633574 is not listed on IDEAS
  6. Steven J. Davis & John C. Haltiwanger & Scott Schuh, 1998. "Job Creation and Destruction," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262540932, June.
  7. Newman, Howard H, 1978. "Strategic Groups and the Structure-Performance Relationship," The Review of Economics and Statistics, MIT Press, vol. 60(3), pages 417-27, August.
  8. John C. Haltiwanger, 1997. "Measuring and analyzing aggregate fluctuations: the importance of building from microeconomic evidence," Review, Federal Reserve Bank of St. Louis, issue May, pages 55-78.
  9. Baldwin, John R. & Harchaoui, Tarek, 2002. "Productivity Growth in Canada," Productivity Growth in Canada, Statistics Canada, Economic Analysis, number stcb6e, December.
  10. David B. Audretsch & A. Roy Thurik, 1999. "Innovation, Industry Evoluation and Employment," Tinbergen Institute Discussion Papers 99-068/3, Tinbergen Institute.
  11. Baldwin, John R., 1996. "Productivity Growth, Plant Turnover and Restructuring in the Canadian Manufacturing Sector," Analytical Studies Branch Research Paper Series 1995087e, Statistics Canada, Analytical Studies Branch.
  12. Bee Yan Aw & Xiaomin Chen & Mark J. Roberts, 1997. "Firm-level Evidence on Productivity Differentials, Turnover, and Exports in Taiwanese Manufacturing," NBER Working Papers 6235, National Bureau of Economic Research, Inc.
  13. repec:cup:cbooks:9780521465618 is not listed on IDEAS
  14. Agarwal, Rajshree & Gort, Michael, 1996. "The Evolution of Markets and Entry, Exit and Survival of Firms," The Review of Economics and Statistics, MIT Press, vol. 78(3), pages 489-98, August.
  15. Lin, Zhengxi & Picot, Garnett & Yates, Janice, 1999. "The Entry and Exit Dynamics of Self-employment in Canada," Analytical Studies Branch Research Paper Series 1999134e, Statistics Canada, Analytical Studies Branch.
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