Keyword search
Filter results by
Search HelpKeyword(s)
Year of publication
Results
All (9)
All (9) ((9 results))
- 1. Export Growth, Capacity Utilization and Productivity Growth: Evidence from Canadian Manufacturing Plants ArchivedArticles and reports: 11F0027M2011075Geography: CanadaDescription:
Labour productivity growth in the Canadian business sector slowed substantially after 2000. Most of the slowdown occurred in the manufacturing sector. This paper examines how this slowdown was associated with the restructuring that occurred in manufacturing as a result of the increase in excess capacity, the dramatic increase in the Canada-U.S. exchange rate and a slowdown in export growth.
Release date: 2011-12-12 - Articles and reports: 11F0027M2010061Geography: CanadaDescription:
We examine the simultaneous effects of real-exchange-rate movements and of tariff reductions on plant death in Canadian manufacturing industries between 1979 and 1996. We find that both currency appreciation and tariff cuts increase the probability of plant death, but that tariff reductions have a much greater effect. Consistent with the implications of recent international-trade models involving heterogeneous firms, we further find that the effect of exchange-rate movements and tariff cuts on exit are heterogeneous across plants - particularly pronounced among least efficient plants. Our results reveal multi-dimensional heterogeneity that current models featuring one-dimensional heterogeneity (efficiency differences among plants) cannot fully explain. There are significant and substantial differences between exporters and non-exporters, and between domestic- and foreign- controlled plants. Exporters and foreign-owned plants have much lower failure rates; however, their survival is more sensitive to changes in tariffs and real exchange rates, whether differences in their efficiency levels are controlled or not.
Release date: 2010-04-14 - Articles and reports: 11F0027M2009057Geography: CanadaDescription:
This paper examines the challenges that the manufacturing sector has faced over the last half century focusing on both long- and short-term performance. It first examines whether there is evidence that this sector is in long-term decline. The paper also investigates how the industry has responded to specific shocks during this period from exchange-rate movements, trade liberalization and business cycles. It finds little evidence of long-term decline. Rather it describes how manufacturing has adapted to varying challenges, whether from demand shifts due to business cycles, relative price shifts associated with exchange rate shocks or changes in tariff regimes.
Release date: 2009-07-28 - Articles and reports: 11-010-X200800310537Geography: CanadaDescription:
A study of which industries are most reliant on exports for their output, and which import the most inputs.
Release date: 2008-03-13 - 5. Not Dutch Disease, It's China Syndrome ArchivedArticles and reports: 11-624-M2007017Geography: CanadaDescription:
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 - 6. Domestic and Foreign Influences on Canadian Prices over Exchange Rate Cycles, 1974 to 1996 ArchivedArticles and reports: 11F0027M2006043Geography: CanadaDescription:
The paper examines the pricing behaviour of 81 Canadian manufacturing industries from 1974 to 1996. It explores the domestic and foreign factors that affect price formation in Canada and the circumstances in which Canadian prices respond to foreign (U.S.) influences (the law of one price), as opposed to domestic factors (i.e., labour, energy costs and productivity growth). It finds that: (1) Canadian manufacturing prices are, on average, set using a mixture of a cost mark-up pricing rule and the law-of-one-price rule: both domestic factors (such as input prices and productivity) and foreign factors (such as competing U.S. prices) exert important influences on Canadian prices; (2) Canadian prices are more sensitive to U.S. prices if the industry faces higher import competition and if home and foreign products are less differentiated. Compared to prices of domestic products, prices of imported foreign products are more responsive to foreign prices. However, the price of imports also responds to Canadian prices; though this pricing-to-market phenomenon is reduced as imports increase in importance; (3) Industry differences exist. Domestic prices respond more to productivity changes in industries where competition is more intense and where products are more homogeneous. Imports respond more to domestic factors when they account for a smaller share of the domestic market; (4) As the pressure from foreign markets increases, in a period of an appreciating Canadian dollar, changes in prices are influenced more by fluctuations in foreign prices. In comparison, when the pressure from foreign markets decreases, in a period of a depreciating Canadian dollar, changes in Canadian prices are more responsive to input cost changes at home. Disequilibria that were generated by previous shocks are overcome more quickly during periods when the exchange rate appreciated.
Release date: 2006-11-08 - Articles and reports: 11F0027M2006041Geography: CanadaDescription:
During the post-1970 period, Canadian manufacturing prices have alternately increased and fallen relative to U.S. prices' just the reverse of the cycle in the Canada' U.S. exchange rate. But not all manufacturing industries have experienced the same amplitude of relative price changes. This paper examines the industry characteristics that are related to the shifts in competitiveness, measured as the relative price ratio between Canadian prices and U.S. prices adjusted by the exchange rate. We find that relative factor input costs and relative productivity growth are the two most important factors influencing changes in relative Canada' U.S. prices. Competitive pressures emanating from trade are important determinants of the extent to which relative productivity differences are passed through to cross-country relative prices in the manufacturing sector. We also find that the magnitude of domestic market competition and export intensity affects the short-run relative price shifts over the cycle of exchange rate.
Release date: 2006-06-28 - Articles and reports: 11-010-X20050128971Geography: CanadaDescription:
Most of the recent gap between shipments growth in Canada and the US reflects lower prices due to the exchange rate.
Release date: 2005-12-08 - 9. Integration and Co-integration: Do Canada-U.S. Manufacturing Prices Obey the Law of One Price? ArchivedArticles and reports: 11F0027M2005029Geography: CanadaDescription:
This paper uses a detailed industry-level data base of industry prices in the manufacturing sector in Canada and the United States to investigate whether prices are co-integrated in the two countries and whether the relationship between the two sets of prices follows the law of one price. We find that aggregate Canadian price movements track U.S. price movements closely, but not perfectly, in the long run. But there are substantial deviations from the law of one price in the short run. Moreover, many individual industries deviate from the law of one price. These deviations are related to the degree of tariff protection and to the degree of product differentiation at the industry level.
Release date: 2005-02-15
Data (0)
Data (0) (0 results)
No content available at this time.
Analysis (9)
Analysis (9) ((9 results))
- 1. Export Growth, Capacity Utilization and Productivity Growth: Evidence from Canadian Manufacturing Plants ArchivedArticles and reports: 11F0027M2011075Geography: CanadaDescription:
Labour productivity growth in the Canadian business sector slowed substantially after 2000. Most of the slowdown occurred in the manufacturing sector. This paper examines how this slowdown was associated with the restructuring that occurred in manufacturing as a result of the increase in excess capacity, the dramatic increase in the Canada-U.S. exchange rate and a slowdown in export growth.
Release date: 2011-12-12 - Articles and reports: 11F0027M2010061Geography: CanadaDescription:
We examine the simultaneous effects of real-exchange-rate movements and of tariff reductions on plant death in Canadian manufacturing industries between 1979 and 1996. We find that both currency appreciation and tariff cuts increase the probability of plant death, but that tariff reductions have a much greater effect. Consistent with the implications of recent international-trade models involving heterogeneous firms, we further find that the effect of exchange-rate movements and tariff cuts on exit are heterogeneous across plants - particularly pronounced among least efficient plants. Our results reveal multi-dimensional heterogeneity that current models featuring one-dimensional heterogeneity (efficiency differences among plants) cannot fully explain. There are significant and substantial differences between exporters and non-exporters, and between domestic- and foreign- controlled plants. Exporters and foreign-owned plants have much lower failure rates; however, their survival is more sensitive to changes in tariffs and real exchange rates, whether differences in their efficiency levels are controlled or not.
Release date: 2010-04-14 - Articles and reports: 11F0027M2009057Geography: CanadaDescription:
This paper examines the challenges that the manufacturing sector has faced over the last half century focusing on both long- and short-term performance. It first examines whether there is evidence that this sector is in long-term decline. The paper also investigates how the industry has responded to specific shocks during this period from exchange-rate movements, trade liberalization and business cycles. It finds little evidence of long-term decline. Rather it describes how manufacturing has adapted to varying challenges, whether from demand shifts due to business cycles, relative price shifts associated with exchange rate shocks or changes in tariff regimes.
Release date: 2009-07-28 - Articles and reports: 11-010-X200800310537Geography: CanadaDescription:
A study of which industries are most reliant on exports for their output, and which import the most inputs.
Release date: 2008-03-13 - 5. Not Dutch Disease, It's China Syndrome ArchivedArticles and reports: 11-624-M2007017Geography: CanadaDescription:
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 - 6. Domestic and Foreign Influences on Canadian Prices over Exchange Rate Cycles, 1974 to 1996 ArchivedArticles and reports: 11F0027M2006043Geography: CanadaDescription:
The paper examines the pricing behaviour of 81 Canadian manufacturing industries from 1974 to 1996. It explores the domestic and foreign factors that affect price formation in Canada and the circumstances in which Canadian prices respond to foreign (U.S.) influences (the law of one price), as opposed to domestic factors (i.e., labour, energy costs and productivity growth). It finds that: (1) Canadian manufacturing prices are, on average, set using a mixture of a cost mark-up pricing rule and the law-of-one-price rule: both domestic factors (such as input prices and productivity) and foreign factors (such as competing U.S. prices) exert important influences on Canadian prices; (2) Canadian prices are more sensitive to U.S. prices if the industry faces higher import competition and if home and foreign products are less differentiated. Compared to prices of domestic products, prices of imported foreign products are more responsive to foreign prices. However, the price of imports also responds to Canadian prices; though this pricing-to-market phenomenon is reduced as imports increase in importance; (3) Industry differences exist. Domestic prices respond more to productivity changes in industries where competition is more intense and where products are more homogeneous. Imports respond more to domestic factors when they account for a smaller share of the domestic market; (4) As the pressure from foreign markets increases, in a period of an appreciating Canadian dollar, changes in prices are influenced more by fluctuations in foreign prices. In comparison, when the pressure from foreign markets decreases, in a period of a depreciating Canadian dollar, changes in Canadian prices are more responsive to input cost changes at home. Disequilibria that were generated by previous shocks are overcome more quickly during periods when the exchange rate appreciated.
Release date: 2006-11-08 - Articles and reports: 11F0027M2006041Geography: CanadaDescription:
During the post-1970 period, Canadian manufacturing prices have alternately increased and fallen relative to U.S. prices' just the reverse of the cycle in the Canada' U.S. exchange rate. But not all manufacturing industries have experienced the same amplitude of relative price changes. This paper examines the industry characteristics that are related to the shifts in competitiveness, measured as the relative price ratio between Canadian prices and U.S. prices adjusted by the exchange rate. We find that relative factor input costs and relative productivity growth are the two most important factors influencing changes in relative Canada' U.S. prices. Competitive pressures emanating from trade are important determinants of the extent to which relative productivity differences are passed through to cross-country relative prices in the manufacturing sector. We also find that the magnitude of domestic market competition and export intensity affects the short-run relative price shifts over the cycle of exchange rate.
Release date: 2006-06-28 - Articles and reports: 11-010-X20050128971Geography: CanadaDescription:
Most of the recent gap between shipments growth in Canada and the US reflects lower prices due to the exchange rate.
Release date: 2005-12-08 - 9. Integration and Co-integration: Do Canada-U.S. Manufacturing Prices Obey the Law of One Price? ArchivedArticles and reports: 11F0027M2005029Geography: CanadaDescription:
This paper uses a detailed industry-level data base of industry prices in the manufacturing sector in Canada and the United States to investigate whether prices are co-integrated in the two countries and whether the relationship between the two sets of prices follows the law of one price. We find that aggregate Canadian price movements track U.S. price movements closely, but not perfectly, in the long run. But there are substantial deviations from the law of one price in the short run. Moreover, many individual industries deviate from the law of one price. These deviations are related to the degree of tariff protection and to the degree of product differentiation at the industry level.
Release date: 2005-02-15
Reference (0)
Reference (0) (0 results)
No content available at this time.
- Date modified: