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  • Articles and reports: 15-206-X2008022
    Description:

    Many historical comparisons of international productivity use measures of labour productivity (output per worker). Differences in labour productivity can be caused by differences in technical efficiency or differences in capital intensity. Moving to measures of total factor productivity allows international comparisons to ascertain whether differences in labour productivity arise from differences in efficiency or differences in factors utilized in the production process.

    This paper examines differences in output per worker in the manufacturing sectors of Canada and the United States in 1929 and the extent to which it arises from efficiency differences. It makes corrections for differences in capital and materials intensity per worker in order to derive a measure of total factor efficiency of Canada relative to the United States, using detailed industry data. It finds that while output per worker in Canada was only about 75% of the United States productivity level, the total factor productivity measure of Canada was about the same as the United States level - that is, there was very little difference in technical efficiency in the two countries. Canada's lower output per worker was the result of the use of less capital and materials per worker than the United States.

    Release date: 2008-12-23

  • Articles and reports: 11F0027M2008054
    Geography: Canada
    Description:

    The paper investigates how Canadian manufacturing plants adjust to an increase in low-wage import competition by changing their commodity portfolios. At the commodity level, we distinguish between 'core' versus 'peripheral' and differentiated versus homogeneous commodities. We also account for cost and technological complementarities using input-output linkages between commodities produced by a plant. We document large commodity turnover within plants over the period from 1988 to 1996. The largest changes happened in multi-commodity plants and involved peripheral commodities. The commodities that were affected the most were those commodities that are potentially used as inputs in production of the 'core' commodity; homogeneous (rather than differentiated) commodities; and, commodities with relatively weak input complementarities with the core product. Plants experiencing large import competition shifted their output toward production of their core commodity and away from production of unrelated peripheral commodities.

    Release date: 2008-05-16

  • Articles and reports: 11F0027M2008052
    Geography: Canada
    Description:

    Over the past three decades, tariff barriers have fallen significantly, leading to an increasing integration of Canadian manufactures into world markets and especially the U.S. market. Much attention has been paid to the effects of this shift at the national scale, while little attention has been given to whether these effects vary across regions. In a country that spans a continent, there is ample reason to believe that the effects of trade will vary across regions. In particular, location has a significant effect on the size of markets available to firms, and this may impact the extent to which firms reorganize their production in response to falling trade barriers. Utilizing a longitudinal microdata file of manufacturing plants (1974 to 1999), this study tests the effect of higher levels of trade across regions on the organization of production within plants. The study finds that higher levels of export intensity (exports as a share of output) across regions are positively associated with longer production runs, larger plants and product specialization within plants. These effects are strongest in Ontario and Quebec, provinces that are best situated with respect to the U.S. market.

    Release date: 2008-05-09

  • Articles and reports: 11F0027M2008051
    Geography: Canada
    Description:

    This paper investigates the productivity effects of the Canada-United States Free Trade Agreement (FTA) on Canadian manufacturing. It finds that Canadian tariff cuts increased exit rates among moderately productive non-exporting plants. This led to the reallocation of market share toward highly productive plants, which helps explain why aggregate productivity gains were observed when Canadian tariffs were reduced. The paper also finds that all of the within-plant productivity gains resulting from the U.S. tariff cuts involved exporters and, especially, new entrants into the export market. It demonstrates that any lack of output responses and labour-shedding as a consequence of the FTA were experienced by Canadian plants who were non-exporters, while exporters captured the gains from the FTA.

    Release date: 2008-05-07

  • Articles and reports: 11-621-M2008070
    Geography: Canada
    Description:

    This study reviews status and trends for the manufacturing sector in 2007. It analyses major regional and industry shifts in production and put them in the context of major socio-economic drivers such as domestic demand and exports. Employment, productivity and profitability indicators are also presented.

    Release date: 2008-04-29

  • Articles and reports: 11-010-X200800310537
    Geography: Canada
    Description:

    A study of which industries are most reliant on exports for their output, and which import the most inputs.

    Release date: 2008-03-13

  • Articles and reports: 11F0027M2008049
    Geography: Canada
    Description:

    Productivity and wages tend to be higher in cities. This is typically explained by agglomeration economies, which increase the returns associated with urban locations. Competing arguments of specialization and diversity undergird these claims. Empirical research has long sought to confirm the existence of agglomeration economies and to adjudicate between the models of Marshall, Arrow and Romer (MAR) that suggest the benefits of proximity are largely confined to individual industries, and the claims of Jacobs (1969) that such benefits derive from a general increase in the density of economic activity in a particular place and are shared by all occupants of that location. The primary goal of this paper is to identify the main sources of urban increasing returns, after Marshall (1920). A secondary goal is to examine the geographical distance across which externalities flow between businesses in the same industry. We bring to bear on these questions plant-level data organized in the form of a panel across the years 1989 and 1999. The panel data overcome selection bias resulting from unobserved plant-level heterogeneity that is constant over time. Plant-level production functions are estimated across the Canadian manufacturing sector as a whole and for five broad industry groups, each characterized by the nature of their output. Results provide strong support for Marshall's (1920) claims about the importance of buyer-supplier networks, labour market pooling and spillovers. The data show spillovers enhance plant productivity within industries rather than between them and that these spillovers tend to be more spatially extensive than previous studies have found.

    Release date: 2008-02-05

  • Articles and reports: 15-206-X2007015
    Geography: Canada
    Description:

    In this paper, we provide an international comparison of the growth in Canadian and U.S. manufacturing industries over the 1961-to-2003 period. We find that average annual growth rates of labour productivity growth were almost identical in the Canadian and U.S. manufacturing sectors during this period. But the sources of labour productivity growth differed in the two countries. Intermediate input deepening was a more important source of labour productivity growth in Canada than in the United States, while investment in capital and multifactor productivity (MFP) growth were more important in the United States than in Canada. After 1996, labour productivity growth in Canada was lower than in the United States. The post-1996 slower labour productivity growth in Canada relative to the United States was due to slower growth in MFP and slower growth in capital intensity. The slower MFP growth in Canada accounted for 60% of Canada - United States labour productivity growth difference, and slower growth in capital intensity accounted for 30%. The slower MFP growth in the Canadian manufacturing sector relative to that of the United States after 1996 was due to lower MFP growth in the computer and electronic products industry. The slower growth in capital'labour ratio in the Canadian manufacturing compared with the United States after 1996 is related to the changes in relative prices of capital and labour inputs in the two countries.

    Release date: 2007-12-18

  • Articles and reports: 11-010-X200701110382
    Geography: Canada
    Description:

    Exports to China in 2007 have risen faster than imports, reflecting its voracious appetite for resources. This has helped reduce Canada's dependence on US markets.

    Release date: 2007-11-08

  • Articles and reports: 11-624-M2007017
    Geography: Canada
    Description:

    This paper empirically investigates how the Canadian economy has evolved following the rise in commodity prices and appreciation of the Canadian dollar that began in 2003. The adjustment in the manufacturing industry has garnered the greatest attention because it has borne the brunt of job losses. However, the adjustment of the manufacturing industry has not been straightforward. Rather, a complex reallocation has been taking place within manufacturing that has been predominantly due to the integration of emerging nations into the global economy. The increased commodity prices and falling manufactured prices caused by this integration have affected durable and non-durable manufacturing industries differently. Non-durable manufacturers have tended to see their competitiveness eroded and their output has tended to fall. Durable manufacturers, on the other hand, have increased output in response to the resource boom and increased demand in general. The result has been stable manufacturing output overall, accompanied by a re-orientation of manufacturing output away from non-durables and toward durables.

    The appreciated dollar and higher commodity prices have also led to a more widespread industrial reallocation in Canada. The higher commodity prices have started a resource boom, particularly in Alberta. The boom has led to rising resource industry employment, while manufacturing employment declined, and to rising service-sector employment. It has contributed to inter-provincial migration, and has greatly increased the purchasing power of Canadian incomes as terms of trade have improved.

    Release date: 2007-08-16
Reference (12)

Reference (12) (10 to 20 of 12 results)

  • Surveys and statistical programs – Documentation: 5163
    Description: The Survey of Industrial Processes (SIP) is an industry-specific business survey focusing on small- and medium-sized enterprises (SMEs). It is designed to link economic data with industrial processes and environmental outcomes. The SIP collects data on operational activities and engineering processes of industrial, manufacturing, and service oriented establishments.

  • Surveys and statistical programs – Documentation: 5250
    Description: The survey collects information related to the purchase, production, and sale of goods abroad by Canadian businesses. It also gathers information on whether Canadian businesses perform manufacturing or processing work for other Canadian or foreign clients, and whether Canadian businesses hire other Canadian or foreign firms to perform the same type of work.
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