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  • Articles and reports: 11-626-X2012007
    Geography: Canada
    Description:

    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-X2012029
    Geography: Canada
    Description:

    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

  • Table: 61-232-X
    Description:

    Foreign and Domestic Investment in Canada contains capital investment data for construction, machinery and equipment, by country of control. The data were compiled from the Surveys of Capital Expenditures, which also produce the Private and Public Investment Series. Data are available at the two-digit NAICS level for Canada, United States, Germany, France, United Kingdom, Italy, Japan, Netherlands, Sweden, and Switzerland.

    Release date: 2011-05-06

  • Stats in brief: 13-604-M2010064
    Description:

    This paper provides the latest annual results for the U.S./Canada purchasing power parities (PPPs) and real expenditure indexes in the U.S. compared with Canada for the period 2002 to 2009. Revisions to previously published data and an update using the most recent US and Canada expenditure data from the National Accounts and in-depth price comparisons for 2005 are incorporated. The paper provides a primer on purchasing power parities and related measures and why they are important in international comparisons of economic performance. It also describes a new projection methodology for total economy measures that are now based on Gross Domestic Income and shows the impact of this change on the data.

    Release date: 2011-01-28

  • Surveys and statistical programs – Documentation: 15-206-X2010027
    Description:

    Measures of productivity are derived by comparing outputs and inputs. The System of National Accounts (SNA) in Canada provides a useful framework for organizing the information required for comparisons of this type. Integrated systems of economic accounts provide coherent, consistent alternate estimates of the various concepts that can be used to measure productivity.

    Release date: 2010-06-29

  • Articles and reports: 15-206-X2008021
    Description:

    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.

    Release date: 2009-01-14

  • 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: 15-206-X2008019
    Description:

    This paper has three main objectives. First, it examines the level of multifactor productivity (MFP) in Canada relative to that of the United States for the 1994-to-2003 period. Second, it examines the relative importance of differences in capital intensity and MFP in accounting for the labour productivity differences between the two countries. Third, it traces the overall MFP difference between Canada and the United States to its industry origins and estimates the contributions of the goods, services and engineering sectors to the overall MFP gap.

    Our main findings are as follows. First, the overall capital intensity is as high in Canada as in the United States; but there are considerable differences in Canada's capital intensity across asset classes. Canada has considerably less machinery and equipment, about the same amount of buildings and considerably more engineering construction. Second, most of the differences in labour productivity between Canada and the United States are due to the differences in MFP. Third, our industry results show that the levels of labour productivity and MFP in the goods and the engineering sectors are closer to those of the United States. But, the level of labour and multifactor productivity in the services sector is much lower in Canada. The lower levels of labour productivity and MFP in the Canadian services sector account for most of the overall productivity level difference between the two countries.

    Release date: 2008-07-21

  • Articles and reports: 11F0027M2008050
    Geography: Canada
    Description:

    This paper examines whether or not the long-term government bond rate could reasonably be employed as the rate of return on public capital when calculating public sector gross domestic product. It finds that the rate of return on public capital is lower than often reported and is roughly consistent with the rate of return on private capital. Given that there is a range of estimates that are plausible, the paper concludes that the long-run government bond rate could be used as a conservative estimate for the rate of return for public infrastructure.

    Previous studies have shown that production function estimates tend to find rates of return that are implausibly large, while cost function estimates appear more reasonable. This paper shows that public capital and total factor productivity (TFP) growth behave similarly, and argues that production function estimates for the impact of public capital overstate its impact as a result, catching part of what belongs in estimates of TFP. It also shows that the similarity between the growth in public capital and TFP leads to a large confidence interval around public capital elasticity estimates derived from the production function framework. The paper then proceeds by generating a confidence interval from the production function estimated first with and then without TFP growth. It then uses a cost function to pinpoint more precisely estimates for the marginal cost savings from public capital. Importantly, the estimate derived from the cost function is found in the lower part of the confidence interval derived from the production function. The rate of return associated with the overlapping estimates is then shown to cover a range that extends from the average long-run government bond rate to the rate of return on private capital.

    Release date: 2008-04-15

  • Articles and reports: 88F0006X2008002
    Description:

    This paper is based on the findings of the Survey of Technology and Electronic Commerce (SECT), which in 2005 included a module on business incubation service providers and users. The results of the Survey of Business Incubators (SBI) were discussed in Joseph, Bordt and Hamdani (2006). The main difference between the two surveys is that the SBI focused on business incubators (BIs), firms that provided business incubation as their main line of activity the criterion used to define industry boundaries in statistical systems whereas the SECT covered all firms that provided business incubation services to new companies, whether it was their main activity or a small part of the business.

    Release date: 2008-03-27
Data (5)

Data (5) ((5 results))

  • Table: 62-007-X
    Description:

    The publication contains price indexes for expenditures on capital investment, including machinery and equipment by industry of purchase and by commodity group, construction (new housing, apartment buildings and non-residential buildings), inputs used in construction (materials and wage rates) as well as special purchase price indexes for telecommunications and electric utilities. Included are highlights and technical notes.

    Release date: 2013-10-31

  • Table: 67-002-X
    Description:

    This publication presents transactions in Canadian and foreign bonds and stocks and in Canadian money market securities with non-residents. Transactions in each security are classified into new issues, retirements and trade in outstanding securities which shows sales and purchases. Monthly gross and net transactions are presented geographically with the United States, United Kingdom, Japan, other countries of the Organisation for Economic Co-operation and Development (OECD), and other foreign countries by type of security.

    This publication also includes historical data, as well as position information, quarterly and annually, on Canadian bonds and money market paper and a table on selected stock prices and capital market yields.

    Release date: 2012-09-18

  • Table: 61-232-X
    Description:

    Foreign and Domestic Investment in Canada contains capital investment data for construction, machinery and equipment, by country of control. The data were compiled from the Surveys of Capital Expenditures, which also produce the Private and Public Investment Series. Data are available at the two-digit NAICS level for Canada, United States, Germany, France, United Kingdom, Italy, Japan, Netherlands, Sweden, and Switzerland.

    Release date: 2011-05-06

  • Table: 50-002-X200700110352
    Description:

    In 2005, the Canadian passenger bus and urban transit industries generated total revenues of about $8.6 billion, fueled by strong growth in government operating and capital funding. This represented a 12.2% increase over the $7.7 billion recorded for 2004.

    Release date: 2007-06-26

  • Table: 93F0033X
    Description:

    A one-page table for Canada and a one-page table for each of the provinces provide 1996 and 1991 comparisons for some key variables.

    Release date: 1999-02-04
Analysis (39)

Analysis (39) (0 to 10 of 39 results)

  • Articles and reports: 11F0019M2015372
    Description: This paper presents a growth accounting framework in which subsoil mineral and energy resources are recognized as natural capital input into the production process. It is the first study of its kind in Canada. Firstly, the income attributable to subsoil resources, or resource rent, is estimated as a surplus value after all extraction costs and normal returns on produced capital have been accounted for. The value of a resource reserve is then estimated as the present value of the future resource rents generated from the efficient extraction of the reserve. Lastly, with extraction as the observed service flows of natural capital, multifactor productivity (MFP) growth and the other sources of economic growth can be reassessed by updating the income shares of all inputs, and then, by estimating the contribution to growth coming from changes in the value of natural capital input. This framework is then applied to the Canadian oil and gas extraction sector.
    Release date: 2015-12-14

  • Articles and reports: 15-206-X2015039
    Description:

    This paper generates updated estimates of depreciation rates to be used in the Canadian Productivity Accounts for the calculation of capital stock and the user cost of capital. Estimates are derived of depreciation profiles for a diverse set of assets, based on patterns of resale prices and retirement ages.

    A maximum likelihood technique is used to jointly estimate changes in the valuation of assets over the course of their service life, as well as the nature of the discard process used to dispose of assets to generate depreciation rates. This method is more efficient than others in producing estimates with less bias and higher efficiency.

    The earlier estimates that were derived for the period from 1985 to 2001 are compared with those for the latest period, from 2002 to 2010.

    Release date: 2015-01-26

  • Articles and reports: 11F0027M2013085
    Geography: Canada
    Description:

    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: 11-626-X2012016
    Geography: Canada
    Description:

    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

  • Journals and periodicals: 67-001-X
    Description:

    This publication presents Canada's transactions with non-residents on a quarterly basis. These transactions are grouped under two main accounts: the current account which includes goods, services, investment income and current transfers; and the capital and financial account which includes information on a country's investing and financing activities. The transactions are further broken down by major geographical region: United States, United Kingdom, other countries of the European Union, Japan, other countries of the Organization for Economic Co-operation and Development, and all other countries. The data are presented quarterly and annually for the six most recent years.

    Each publication includes several pages of data analysis accompanied by graphics, definitions, CANSIM data bank numbers, data quality measures and a list of occasional articles and research papers. The first quarter issue includes revisions to quarterly and annual data for the most recent four years. Statistics are derived from surveys, administrative data and other sources.

    Release date: 2012-09-04

  • Journals and periodicals: 67-202-X
    Geography: Canada
    Description:

    This publication presents Canada's asset and liability position with non-residents, with a detailed breakdown by claims (direct investment, portfolio, etc.) by industry and by country or organization (United States, United Kingdom, European Union, Japan, Organisation for Economic Co-operation and Development and all other countries). The data also include the foreign holdings of Canada's public debt. In addition, data are provided on Canadian portfolio investments abroad and on the investment income arising from Canada's external assets and liabilities. This publication includes several pages of data analysis accompanied by graphics, definitions and data quality measures. Statistics are derived from surveys, administrative data and other sources.

    Release date: 2012-06-20

  • Articles and reports: 11-626-X2012007
    Geography: Canada
    Description:

    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-X2012029
    Geography: Canada
    Description:

    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

  • Stats in brief: 13-604-M2010064
    Description:

    This paper provides the latest annual results for the U.S./Canada purchasing power parities (PPPs) and real expenditure indexes in the U.S. compared with Canada for the period 2002 to 2009. Revisions to previously published data and an update using the most recent US and Canada expenditure data from the National Accounts and in-depth price comparisons for 2005 are incorporated. The paper provides a primer on purchasing power parities and related measures and why they are important in international comparisons of economic performance. It also describes a new projection methodology for total economy measures that are now based on Gross Domestic Income and shows the impact of this change on the data.

    Release date: 2011-01-28

  • Articles and reports: 15-206-X2008021
    Description:

    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.

    Release date: 2009-01-14
Reference (5)

Reference (5) ((5 results))

  • Surveys and statistical programs – Documentation: 15F0046X
    Description:

    The input-output multipliers are derived from the supply and use tables. They are used to assess the effects on the economy of an exogenous change in final demand for the output of a given industry. They provide a measure of the interdependence between an industry and the rest of the economy.

    The national and provincial multipliers show the direct, indirect, and induced effects on gross output, the detailed components of GDP, jobs, and imports. Like the supply and use tables, the multipliers are presented at four levels of aggregation: Detail level (236 industries), Link-1997 level (187 industries), Link-1961 level (111 industries) and Summary level (35 industries).

    Release date: 2018-04-03

  • Surveys and statistical programs – Documentation: 15-206-X2010027
    Description:

    Measures of productivity are derived by comparing outputs and inputs. The System of National Accounts (SNA) in Canada provides a useful framework for organizing the information required for comparisons of this type. Integrated systems of economic accounts provide coherent, consistent alternate estimates of the various concepts that can be used to measure productivity.

    Release date: 2010-06-29

  • Surveys and statistical programs – Documentation: 15-206-X2008016
    Description:

    This paper focuses on the role of investments in infrastructure in Canada. The size of infrastructure investments relative to other capital stock sets this country apart from most other Organisation for Economic Co-operation and Development countries. The paper reviews the approaches taken by other researchers to define infrastructure. It then outlines a taxonomy to define those assets that should be considered as infrastructure and that can be used to assess the importance of different types of capital investments. It briefly considers how to define the portion of infrastructure that should be considered 'public'. The final two parts of the paper apply the proposed classification system to data on Canada's capital stock, and ask the following questions: how much infrastructure does Canada have and in which sectors of the economy is this infrastructure located? Finally, the paper investigates how Canada's infrastructure has evolved over the last four decades, both in the commercial and non-commercial sectors, and compares these trends with the pattern that can be found in the United States.

    Release date: 2008-03-12

  • Surveys and statistical programs – Documentation: 15-206-X2007009
    Description:

    This paper examines the effects of alternative specifications of the user costs of capital on the estimated price and volume indices of capital services. It asks how sensitive the results are to the use of exogenous versus endogenous rates of return, to alternate ways of including capital gains, and to whether corrections are made for tax rates. The paper also examines the effect of the various user cost formulae on the measured multifactor productivity growth.

    Release date: 2007-04-04

  • Surveys and statistical programs – Documentation: 11F0026M2005004
    Description:

    A statistical agency faces several challenges in building Productivity Accounts. Measures of productivity require that outputs be compared to inputs.

    This paper discusses the challenges that a statistical agency faces in this area -as illustrated by the Canadian experience. First, it examines the progress that has been made in developing a system that integrates the Productivity Accounts into the overall System of National Accounts. It also discusses deficiencies that still need to be overcome. Finally, the paper focuses on the need to consider whether the SNA manual should be extended into the area of productivity measurement. The paper argues that the advantage of integrating productivity accounts into the general accounts is sufficiently great that it is time to include more detail on the nature of productivity accounts in the general SNA framework.

    Release date: 2005-04-28
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