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Explaining Industry Differences in IT Investment Per Worker Between Canada and the United States, 2002-2013


  • Jasmin Thomas



In the past, attention has been focused on the aggregate ICT investment per worker gap, but 49.8 per cent of lower business sector IT investment per worker in Canada relative to the United States in 2013 was explained by two industries: information and cultural industries and professional, scientific and technical services. The main objective of this report is to shed light on the possible reasons for the gap in these sectors, including data measurement and comparability issues stemming from methodological differences between statistical agencies in Canada and the United States, and differences in potential explanatory variables of IT investment, such as human capital, taxation, profits, firm creation rates, industrial structure, and regulation, among others.

Suggested Citation

  • Jasmin Thomas, 2016. "Explaining Industry Differences in IT Investment Per Worker Between Canada and the United States, 2002-2013," CSLS Research Reports 2016-01, Centre for the Study of Living Standards.
  • Handle: RePEc:sls:resrep:1601

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    References listed on IDEAS

    1. repec:clh:resear:v:8:y:2015:i:4 is not listed on IDEAS
    2. Stephen D. Oliner & Daniel E. Sichel, 2000. "The Resurgence of Growth in the Late 1990s: Is Information Technology the Story?," Journal of Economic Perspectives, American Economic Association, vol. 14(4), pages 3-22, Fall.
    3. Andrew Sharpe, 2014. "What Explains the Canada-U.S. Software Investment Intensity Gap?," CSLS Research Reports 2014-04, Centre for the Study of Living Standards.
    4. Andrew Sharpe, 2006. "The Relationship between ICT Investment and Productivity in the Canadian Economy: A Review of the Evidence," CSLS Research Reports 2006-05, Centre for the Study of Living Standards.
    5. Andrew Sharpe & Jean-Fran├žois Arsenault, 2008. "The Canada-US ICT Investment Gap: An Update," CSLS Research Reports 2008-01, Centre for the Study of Living Standards.
    6. Erik Brynjolfsson & Lorin M. Hitt, 2000. "Beyond Computation: Information Technology, Organizational Transformation and Business Performance," Journal of Economic Perspectives, American Economic Association, vol. 14(4), pages 23-48, Fall.
    7. Jasmin Thomas, 2015. "An Analysis of the Canada-U.S. ICT Investment Gap: An Update to 2013," CSLS Research Reports 2015-01, Centre for the Study of Living Standards.
    8. Matteo Bugamelli & Patrizio Pagano, 2004. "Barriers to investment in ICT," Applied Economics, Taylor & Francis Journals, vol. 36(20), pages 2275-2286.
    9. Richard Dion & Robert Fay, 2008. "Understanding Productivity: A Review of Recent Technical Research," Discussion Papers 08-3, Bank of Canada.
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    Cited by:

    1. Jasmin Thomas, 2016. "New Evidence on the Canada-U.S. ICT Investment Gap, 1976-2014 Selected OECD Countries, 1986-2013," CSLS Research Reports 2016-17, Centre for the Study of Living Standards.

    More about this item


    Investment; Information and Communication Technology; Information Technology; ICT; IT; Productivity; Industries; Professional Services; Cultural Industries;

    JEL classification:

    • E22 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Investment; Capital; Intangible Capital; Capacity
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General
    • L70 - Industrial Organization - - Industry Studies: Primary Products and Construction - - - General
    • L80 - Industrial Organization - - Industry Studies: Services - - - General
    • L90 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - General
    • N72 - Economic History - - Economic History: Transport, International and Domestic Trade, Energy, and Other Services - - - U.S.; Canada: 1913-
    • N32 - Economic History - - Labor and Consumers, Demography, Education, Health, Welfare, Income, Wealth, Religion, and Philanthropy - - - U.S.; Canada: 1913-
    • N12 - Economic History - - Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations - - - U.S.; Canada: 1913-

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