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Plant Turnover and Productivity Growth in Canadian Manufacturing

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  • Baldwin, John R.
  • Gu, Wulong

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

  • Baldwin, John R. & Gu, Wulong, 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: http://www5.statcan.gc.ca/olc-cel/olc.action?ObjId=11F0019M2003193&ObjType=46&lang=en&limit=0
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    References listed on IDEAS

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    1. Morley Gunderson, 2003. "Age Discrimination in Employment in Canada," Contemporary Economic Policy, Western Economic Association International, vol. 21(3), pages 318-328, July.
    2. M. Shannon & D. Grierson, 2004. "Mandatory retirement and older worker employment," Canadian Journal of Economics, Canadian Economics Association, vol. 37(3), pages 528-551, August.
    3. Thomas Flanagan, 1985. "Policy-making by Exegesis: The Abolition of 'Mandatory Retirement' in Manitoba," Canadian Public Policy, University of Toronto Press, vol. 11(1), pages 40-53, March.
    4. Orley Ashenfelter & David Card, 2002. "Did the Elimination of Mandatory Retirement Affect Faculty Retirement?," American Economic Review, American Economic Association, vol. 92(4), pages 957-980, September.
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    More about this item

    Keywords

    Business performance and ownership; Economic accounts; Entry; exit; mergers and growth; Manufacturing; Productivity accounts;

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