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- 1. Productivity Growth in the Canadian Broadcasting and Telecommunications Industry: Evidence from Micro Data ArchivedArticles and reports: 11F0027M2014089Geography: CanadaDescription:
This paper examines two aspects of productivity growth in Canada's broadcasting and telecommunications industry. The first is the extent to which aggregate MFP growth in the sector came from scale economies as opposed to technical progress. The second is the extent to which aggregate labour productivity growth and MFP growth came from within-firm growth, and from the effect of reallocation due to firm entry and exit and within incumbents' the dynamic forces associated with competitive change.
Release date: 2014-02-06 - Articles and reports: 11-626-X2013031Geography: CanadaDescription:
This article in the Economic Insights series reports the impact of correcting for variations in capacity utilization on multifactor productivity growth in Canadian business industries. It is based on a recently released Statistics Canada research paper. Results show that multifactor productivity growth is procyclical for almost all business industries, and that such pro-cyclicality largely reflects variations in capacity utilization in some industries, especially in manufacturing and mining.
Release date: 2013-10-04 - 3. Productivity Growth and Capacity Utilization ArchivedArticles and reports: 11F0027M2013085Geography: CanadaDescription:
This paper presents a non-parametric approach for adjusting the multifactor productivity growth (MFPG) measure for variations in capacity utilization over time. In the framework developed here, a capital utilization measure is derived from the economic theory of production and is estimated by comparing the ex-post return with the ex-ante expected return on capital. The non-parametric approach is then compared with the parametric approach and the standard growth accounting framework. Both the non-parametric and parametric approaches correct for the cyclical bias in the standard MFPG measure, but the non-parametric approach offers more practical adjustment for capacity utilization, because it is easier to implement and more in line with the non-parametric approach long used by statistical agencies and researchers.
Release date: 2013-07-23 - Articles and reports: 15-206-X2013030Geography: Canada, Province or territoryDescription:
This paper provides a provincial perspective on the slowdown in productivity and economic growth in the total business sector in Canada between 2000 and 2010 compared to the late 1990s. It uses the most recent provincial multifactor productivity database.
Release date: 2013-04-17 - Articles and reports: 11F0027M2013084Geography: CanadaDescription:
There is abundant evidence that many firms cluster together in space and that there is an association between clustering and productivity. This paper moves beyond identifying the broad effects of clustering and explores how different types of firms benefit from agglomeration. It advances research on agglomeration by showing, first, that not all firms gain to the same degree from co-location and, second, that businesses with different internal capabilities capture different forms of geographical externalities. The empirical analysis focuses on Canadian manufacturing establishments operating over the period from 1989 to 1999.
Release date: 2013-02-06 - Articles and reports: 11-626-X2012016Geography: CanadaDescription:
This article in the Economic Insights series discusses the impact of capitalization of research and development (R&D) expenditure on gross domestic product (GDP) and productivity growth. Capitalizing R&D expenditure increases the scope of investment, and hence, the level of measured capital and GDP. Because R&D expenditure accounts for a small share of GDP, R&D capitalization has little impact on GDP and labour productivity growth.
Release date: 2012-10-12 - 7. The New Investment Paradigm? ArchivedArticles and reports: 11-626-X2012007Geography: CanadaDescription:
This article in the Economic Insights series summarizes results from current Statistics Canada research on investment and capital stock accumulation. It is based on the study, "Intangible Capital and Productivity Growth in Canada".
Release date: 2012-06-14 - Articles and reports: 15-206-X2012029Geography: CanadaDescription:
Intangible capital consists of investments that do not take on the solid, physical characteristics of machinery and equipment or buildings. Nevertheless, such investments have some of the properties of other types of investments in that they yield long-lasting benefits as a result of expenditures that are made today. In the National Accounts, these expenditures need to be capitalized rather than expensed as intermediate materials for purposes of estimating gross domestic product (GDP).
Recent papers have considered issues surrounding the measurement of intangibles. Baldwin et al. (2005) discussed issues surrounding research and development (R&D). They noted that R&D is only one of the components of innovation expenditures. Baldwin et al. (2009) extended the measurement of intangible investments beyond that of just R&D. At the heart of intangible investments, of course, are software and R&D. However, intangible investments also consist of purchased science services, own-account scientific services, exploration expenses in the resource sector, and advertising expenditures, because these create an intangible asset and yield long-term benefits.
This paper extends the authors' previous work in three ways. First, it expands it into several new areas--what are referred to as economic competencies. These involve primarily investments in human capital--via management and training investments as well as management consulting services. This not only provides broader coverage; it also allows cross-country comparisons of Canada to the United States.
Second, this paper moves from just measuring investment to also developing capital stock estimates. This requires assumptions about depreciation rates. In both instances, the paper adopts assumptions similar to those used elsewhere in developing estimates for the United States, in order to ensure comparability.
Third, the paper incorporates the estimates of intangible capital into the growth-accounting framework so as to understand how it is related to productivity growth. A comparison of Canada and the United States in this regard is also provided.
Release date: 2012-06-01 - 9. Revisions to Canada and United States Annual Estimates of Labour Productivity in the Business SectorJournals and periodicals: 15-212-XGeography: CanadaDescription: This paper examines the revisions published in 2011 to Canadian and the United States business sector labour productivity estimates and related variables. In addition to the usual three years revision cycle of the Canadian National Accounts, hours worked in Canada were revised back to 1981 to incorporate the historical revision of the Labour Force Survey published in January 2011. The United States National Accounts estimates were revised back to 2003 and hours worked back to 2002.Release date: 2012-03-29
- 10. Market Expansion and Productivity Growth: Do New Domestic Markets Matter As Much As New International Markets? ArchivedArticles and reports: 11F0027M2012078Geography: CanadaDescription:
This paper asks how market expansion contributes to productivity growth. It investigates whether entry to both new international markets and new domestic markets is associated with greater productivity growth. It also examines whether exit from export markets is necessarily associated with deteriorating performance or whether it too can lead to success when associated with movements to new markets. Finally, the paper examines the strategy of firms that move to new markets after they withdraw from export markets in order to examine the differences that set them apart from their counterparts that do not find themselves able to adapt because they simply withdraw to their home domestic markets.
Release date: 2012-03-20
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- Articles and reports: 88-003-X20030026560Geography: CanadaDescription:
Food processing is one of Canada's largest manufacturing industries, consisting of more than 3,000 establishments. Employing close to 230,000 people in 1998, it boasted a gross domestic product of $15 billion that same year. The relationship between the use of advanced manufacturing technology and firm performance during the 1990s, as measured by growth in labour productivity and growth in market share, is the subject of a recently released Statistics Canada study, which finds that a high-technology orientation is closely associated with success.
Release date: 2003-06-27 - 52. Impact of Advanced Technology Use on Firm Performance in the Canadian Food Processing Sector ArchivedArticles and reports: 11F0027M2003012Geography: CanadaDescription:
This paper investigates the evolution of industrial structure in the Canadian food processing sector and its relationship to technological change. It uses 1998 special survey data on advanced technology use, plant characteristics and plant performance.
Release date: 2003-06-03 - Articles and reports: 11F0019M2003193Geography: CanadaDescription:
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.
Release date: 2003-04-02 - Articles and reports: 11F0027M2003010Geography: CanadaDescription:
This research paper explores the productivity gap between Canada and the United States. It constructs a North American frontier for the business sector and manufacturing sectors based on data from the two countries.
Release date: 2003-03-31 - 55. Purchasing Power Parity: A Canada/U.S. Exploration ArchivedArticles and reports: 11F0027M2002002Geography: CanadaDescription:
The paper examines the possible explanations for deviations from purchasing power parity (PPP) between Canada and the United States in the 1980s and 1990s and investigates both the productivity effect and the underlying PPP assumption for tradable goods.
Release date: 2002-05-30 - Articles and reports: 11F0019M2001174Geography: CanadaDescription:
This paper investigates the evolution of the industrial structure in the Canadian manufacturing sector and its relationship to technological change by examining the take-up of advanced technologies and how it is related to the stochastic growth process in the plant population. Its framework is grounded in the view that growth is a stochastic process that involves learning. Experimentation with new technologies rewards some firms with superior growth and profitability. Examining how growth is associated with the choice of different technology strategies indicates which of these is being rewarded.
The evolution of this process is studied by examining the relationship between the uptake of advanced technologies and the performance of plants in the manufacturing sector. This is done by using cross-sectional data on advanced technology use and by combining it with longitudinal panel data on plant performance. In particular, the paper examines the relationship between the use of information and communications technology (ICT) and the growth in a plant's market share and its relative productivity.
The study finds that a considerable amount of market share is transferred from declining firms to growing firms over a decade. At the same time, the growers increase their productivity relative to the losers. Those technology users that were using communications technologies or that combined technologies from different classes increased their relative productivity the most. In turn, gains in relative productivity were accompanied by gains in market share. Other factors that were associated with gains in market share were the presence of R&D facilities and other innovative activities.
Release date: 2001-10-03 - 57. Innovation and Training in New Firms ArchivedArticles and reports: 11F0019M2000123Geography: CanadaDescription:
Recent studies have demonstrated the quantitative importance of entry, exit, growth and decline in the industrial population. It is this turnover that rewards innovative activity and contributes to productivity growth.
While the size of the entry population is impressive - especially when cumulated over time - the importance of entry is ultimately due to its impact on innovation in the economy. Experimentation is important in a dynamic, market-based economy. A key part of the experimentation comes from entrants. New entrepreneurs constantly offer consumers new products both in terms of the basic good and the level of service that accompanies it.
This experimentation is associated with significant costs since many entrants fail. Young firms are most at risk of failure; data drawn from a longitudinal file of Canadian entrants in both the goods and service sectors show that over half the new firms that fail do so in the first two years of life. Life is short for the majority of entrants. Only 1 in 5 new firms survive to their tenth birthday.
Since so many entrants fall by the wayside, it is of inherent interest to understand the conditions that are associated with success, the conditions that allow the potential in new entrepreneurs to come to fruition. The success of an entrant is due to its choosing the correct combination of strategies and activities. To understand how these capabilities contribute to growth, it is necessary to study how the performance of entrants relates to differences in strategies and pursued activities.
This paper describes the environment and the characteristics of entrants that manage to survive and grow. In doing so, it focuses on two issues. The first is the innovativeness of entrants and the extent to which their growth depends on their innovativeness. The second is to outline how the stress on worker skills, which is partially related to training, complements innovation and contributes to growth.
Release date: 2000-12-08 - 58. Measuring productivity ArchivedArticles and reports: 75-001-X19950011780Geography: CanadaDescription:
When productivity increases in a sector, does it mean employment growth? This article explores the question and introduces a new concept: multifactor productivity.
Release date: 1995-03-08
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