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The Impact of Public Infrastructure on Canadian Multifactor Productivity Estimates

Author

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  • Gu, Wulong
  • Macdonald, Ryan

Abstract

This paper makes use of a growth accounting framework to examine the importance of public capital for private sector productivity growth. Most measures of multifactor productivity consider only the inputs of the business sector. This paper produces an alternate measure of multifactor productivity for the business sector that incorporates the impact of public capital. It uses the estimate of the elasticity of business sector output with respect to public capital derived from Macdonald (2008). Over the period, the conventional estimate of MFP growth averages 0.4% per year. About half of this growth is attributable to public capital.

Suggested Citation

  • Gu, Wulong & Macdonald, Ryan, 2009. "The Impact of Public Infrastructure on Canadian Multifactor Productivity Estimates," The Canadian Productivity Review 2008021e, Statistics Canada, Economic Analysis Division.
  • Handle: RePEc:stc:stcp6e:2008021e
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    File URL: http://www5.statcan.gc.ca/olc-cel/olc.action?ObjId=15-206-X2008021&ObjType=46&lang=en&limit=0
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    Citations

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    Cited by:

    1. Dorothée Boccanfuso & Marcelin Joanis & Mathieu Paquet & Luc Savard, 2015. "The impact of infrastructure on productivity: new estimates for Québec," Cahiers de recherche Classification-JEL: C13, , Departement d'Economique de l'École de gestion à l'Université de Sherbrooke.
    2. Andrew Sharpe, 2015. "Ontario's Productivity Performance, 2000-2012: A Detailed Analysis," CSLS Research Reports 2015-04, Centre for the Study of Living Standards.
    3. Don Drummond & Evan Capeluck & Matthew Calver, 2015. "The Key Challenge for Canadian Public Policy: Generating Inclusive and Sustainable Economic Growth," CSLS Research Reports 2015-11, Centre for the Study of Living Standards.
    4. Ben Dachis, 2013. "Cars, Congestion and Costs: A New Approach to Evaluating Government Infrastructure Investment," C.D. Howe Institute Commentary, C.D. Howe Institute, issue 385, July.

    More about this item

    Keywords

    Economic accounts; Productivity accounts;

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