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Plant Turnover and Productivity Growth in Canadian Manufacturing

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  • Gu, Wulong
  • Baldwin, John R.

Abstract

This paper outlines the size of the turnover in plants that have entered and exited the Canadian manufacturing sector during the three periods: 1973-1979, 1979-1988 and 1988-1997. It also examines the contribution of plant turnover to labour productivity growth in the manufacturing sector over the three periods. Plant turnover makes a significant contribution to productivity growth as more productive entrants replace exiting plants that are less productive. A disproportionately large fraction of the contribution of plant turnover to productivity growth is due to multi-plant or foreign-controlled firms closing down and opening up new plants. The plants opened up by multi-plant or foreign-controlled firms are typically much more productive than those opened by single-plant or domestic-controlled.

Suggested Citation

  • Gu, Wulong & Baldwin, John R., 2003. "Plant Turnover and Productivity Growth in Canadian Manufacturing," Analytical Studies Branch Research Paper Series 2003193e, Statistics Canada, Analytical Studies Branch.
    • Handle: RePEc:stc:stcp3e:2003193e
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    File URL: https://www150.statcan.gc.ca/n1/en/catalogue/11F0019M2003193
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    Keywords

    Business performance and ownership; Economic accounts; Entry; exit; mergers and growth; Manufacturing; Productivity accounts;
    All these keywords.

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