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Labour Productivity Differences Between Domestic and Foreign-controlled Establishments in the Canadian Manufacturing Sector

  • Dhaliwal, Naginder
  • Baldwin, John R.

This study uses data to study differences in labour productivity gains across domestic and foreign-controlled establishments in the manufacturing sector for the period 1973 to 1993. In doing so, it also examines the extent to which labour productivity differences exist between small and large establishments and across industry sectors and how they have been changing over time. The analysis consists of three parts. In the first section, the connection between labour usage and output is examined. This analysis investigates differences in marginal labour propensities for the different subgroups in the short and long-run. Here volatility is seen to be lower for foreign-controlled establishments. The second section examines the difference between the growth in average labour productivity for the same groups. Here foreign-controlled establishments are seen to have the highest growth rates. The third section investigates whether any trend can be found in the rates of growth for large and small, domestic and foreign establishments and finds that these differences have been increasing over time.

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File URL: http://www5.statcan.gc.ca/olc-cel/olc.action?ObjId=11F0019M2000118&ObjType=46&lang=en&limit=0
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Paper provided by Statistics Canada, Analytical Studies Branch in its series Analytical Studies Branch Research Paper Series with number 2000118e.

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Date of creation: 01 Mar 2000
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Handle: RePEc:stc:stcp3e:2000118e
Contact details of provider: Postal: Tunney's Pasture, Ottawa, Ontario, K1A 0T6
Web page: http://www.statcan.gc.ca

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  1. Baldwin,John R. & Gorecki,Paul, 1998. "The Dynamics of Industrial Competition," Cambridge Books, Cambridge University Press, number 9780521633574.
  2. Baldwin, John & Picot, Garnett, 1995. " Employment Generation by Small Producers in the Canadian Manufacturing Sector," Small Business Economics, Springer, vol. 7(4), pages 317-31, August.
  3. 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.
  4. Martin N. Baily & Eric J. Bartelsman & John Haltiwanger, 1994. "Downsizing and productivity growth: myth or reality?," Finance and Economics Discussion Series 94-7, Board of Governors of the Federal Reserve System (U.S.).
  5. Heckman, James J, 1979. "Sample Selection Bias as a Specification Error," Econometrica, Econometric Society, vol. 47(1), pages 153-61, January.
  6. 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.
  7. Baldwin, John R. & Raffiquzzaman, Mohammed, 1998. "The Effect of Technology and Trade on Wage Differentials Between Nonproduction and Production Workers in Canadian Manufacturing," Analytical Studies Branch Research Paper Series 1998098e, Statistics Canada, Analytical Studies Branch.
  8. Sabourin, David & Baldwin, John R. & Diverty, Brent, 1995. "Technology Use and Industrial Transformation: Empirical Perspectives," Analytical Studies Branch Research Paper Series 1995075e, Statistics Canada, Analytical Studies Branch.
  9. Baldwin, John R. & Diverty, Brent, 1995. "Advanced Technology Use in Canadian Manufacturing Establishments," Analytical Studies Branch Research Paper Series 1995085e, Statistics Canada, Analytical Studies Branch.
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