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The Canada-Atlantic Canada Manufacturing Productivity Gap: A Detailed Analysis

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  • Andrew Sharpe

    ()

Abstract

The objectives of this report are to examine the characteristics of manufacturing in Atlantic Canada and to shed light on the factors behind the productivity gap between Atlantic Canada and Canada in the context of the manufacturing sector. A number of possible factors contributing to the Atlantic Canada-Canada manufacturing productivity gap are examined, including innovative activity, capital intensity, quality of human resources, economies of scale and the seasonality of production. Of these, innovation is found to be the most important. Since research and development activity has been historically much lower in Atlantic Canada relative to Canada, it is possible that the level of technology embedded in the capital stock in Atlantic Canada is much lower than in Canada. In the end four factors are identified as contributing the most to the Atlantic Canada-Canada manufacturing productivity gap, namely less innovative effort, particularly in high-tech industries; fewer economies of scale; lower educational attainment of the workforce; and greater seasonality of production.

Suggested Citation

  • Andrew Sharpe, 2003. "The Canada-Atlantic Canada Manufacturing Productivity Gap: A Detailed Analysis," CSLS Research Reports 2003-08, Centre for the Study of Living Standards.
  • Handle: RePEc:sls:resrep:0308
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    File URL: http://www.csls.ca/reports/acoa2003.pdf
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    File URL: http://www.csls.ca/reports/ACOA%20Appendix%20Tables%20(1-72)%20and%20List.zip
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    More about this item

    Keywords

    Canada; Atlantic Canada; Manufacturing; Productivity; Productivity Growth; Living Standards; Income; Economies of Scale; Seasonality; Seasonal Production; Innovation; Research and Development; R&D; Capital Intensity; Human Capital; Educational Attainment;

    JEL classification:

    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • O57 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries
    • J60 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - General
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity

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