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- Articles and reports: 11-010-X200900810917Geography: CanadaDescription:
Manufacturing's share of nominal GDP has fallen over the last half century due to lower relative prices in Canada, not a declining volume of production. These price declines reflect productivity growth, while also lowered the share of manufacturing in employment. Canada's manufacturing structure shifted to mirror the United States after free trade was introduced in the 1990s.
Release date: 2009-08-13 - 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: 11F0027M2008051Geography: CanadaDescription:
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: 11-010-X20060129545Geography: CanadaDescription:
This paper documents how changes in the rules of trade have affected the clothing market. Free trade with the US initially was a boon to domestic output and jobs. Imports from less-developed countries increased in the 1990s, but the entry of China into the WTO saw the displacement of many of these countries, as well as domestic producers. Consumers reaped the benefit of cheaper imports.
Release date: 2006-12-07 - 5. How Are Canadian Regions Adjusting to a Larger and More Integrated North American Market? ArchivedArticles and reports: 11F0027M2006039Geography: CanadaDescription:
This paper relates to two understudied, but increasingly important concerns: the measurement of regional integration, and the regional benefits to North American economic integration. The objective is to measure Canada's regional integration in manufacturing industries with that of the United States, and examine the regional impact of growing trade integration on productivity growth and select other economic performance variables.
Our research shows that Canada and each of its regions are becoming more integrated in trade in manufactures with the United States, but Ontario is much more integrated than the rest of Canada. While all regions have benefited through improved productivity performance, higher wages and higher output growth, Ontario has been the principal beneficiary. No evidence was found that increased trade integration in manufactures with the United States caused anything more than short-run adjustment losses in employment. Canada and each of its regions have expanded their share of North American manufacturing which stands in sharp contrast to the supposition that it would be the United States that would experience a growth in North American production share (Krugman, 1980).
Release date: 2006-05-31 - Articles and reports: 11F0027M2006038Geography: CanadaDescription:
This paper examines the effect of trade liberalization on plant scale, production-run length and product diversification. We first develop a model of trade in differentiated products with multi-product plants. We then present empirical evidence using a large panel of Canadian manufacturing plants and their experience with the 1989 Canada-U.S. Free Trade Agreement (FTA). The model predicts that the bilateral tariff reduction reduces the product diversification of exporting plants, increases the production-run length and has an ambiguous effect on the size of those plants. It also reduces the product diversification and size of non-exporting plants, and has no effect on the production-run length of those plants. The empirical evidence on non-exporting plants provides broad support for the model. The evidence on exporting plants shows that exporters reduce product diversification, and increase production-run length and plant size, but those changes do not appear to be related to tariff cuts. Once in the export markets, plants respond to forces other than tariff cuts. Further tariff cuts have less effect on those plants.
Release date: 2006-05-19 - 7. Global Links: Multinationals, Foreign Ownership and Productivity Growth in Canadian Manufacturing ArchivedArticles and reports: 11-622-M2005009Geography: CanadaDescription:
This paper examines two potential benefits of foreign-controlled plants in the Canadian manufacturing sector: the superior performance of foreign-controlled plants and their productivity spillovers to domestic plants. The paper finds that foreign-controlled plants are more productive, more innovative, more technology intensive, pay higher wages and use more skilled workers. This foreign-ownership advantage is found to be a multinational advantage. What matters for economic performance is whether plants belong to multinational enterprises (MNEs) rather than ownership per se. Canadian multinationals are as productive as foreign multinationals. We also find that MNEs have accounted for a disproportionately large share of productivity growth in the last two decades. Finally, we find robust evidence for productivity spillovers from foreign-controlled plants to domestic-controlled plants arising from increased competition and greater use of new technologies among domestic plants.
Release date: 2005-12-05 - 8. The Effect of Tariff Reductions on Firm Size and Firm Turnover in Canadian Manufacturing ArchivedArticles and reports: 11F0027M2003014Geography: CanadaDescription:
This paper examines substantial productivity gains in Canadian manufacturing resulting from tariff reductions from the Canada-U.S. Free Trade Agreement.
Release date: 2003-09-08 - 9. Regional Manufacturing Employment Volatility in Canada: The Effects of Specialization and Trade ArchivedArticles and reports: 11F0027M2003005Geography: CanadaDescription:
This paper measures the structural characteristics of regional economies; diversity, growth, plant size and export intensity; increases in export orientation; and other aspects of manufacturing employment in different Canadian regions for the period 1976 to 1997.
Release date: 2003-04-11 - Articles and reports: 21-601-M2002059Description:
The purpose of this paper is to examine profitability trends in the Canadian food processing industry, comparing it with other manufacturing industries during the period of 1990 to 1998.
Release date: 2002-11-14
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- Articles and reports: 11-010-X200900810917Geography: CanadaDescription:
Manufacturing's share of nominal GDP has fallen over the last half century due to lower relative prices in Canada, not a declining volume of production. These price declines reflect productivity growth, while also lowered the share of manufacturing in employment. Canada's manufacturing structure shifted to mirror the United States after free trade was introduced in the 1990s.
Release date: 2009-08-13 - 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: 11F0027M2008051Geography: CanadaDescription:
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: 11-010-X20060129545Geography: CanadaDescription:
This paper documents how changes in the rules of trade have affected the clothing market. Free trade with the US initially was a boon to domestic output and jobs. Imports from less-developed countries increased in the 1990s, but the entry of China into the WTO saw the displacement of many of these countries, as well as domestic producers. Consumers reaped the benefit of cheaper imports.
Release date: 2006-12-07 - 5. How Are Canadian Regions Adjusting to a Larger and More Integrated North American Market? ArchivedArticles and reports: 11F0027M2006039Geography: CanadaDescription:
This paper relates to two understudied, but increasingly important concerns: the measurement of regional integration, and the regional benefits to North American economic integration. The objective is to measure Canada's regional integration in manufacturing industries with that of the United States, and examine the regional impact of growing trade integration on productivity growth and select other economic performance variables.
Our research shows that Canada and each of its regions are becoming more integrated in trade in manufactures with the United States, but Ontario is much more integrated than the rest of Canada. While all regions have benefited through improved productivity performance, higher wages and higher output growth, Ontario has been the principal beneficiary. No evidence was found that increased trade integration in manufactures with the United States caused anything more than short-run adjustment losses in employment. Canada and each of its regions have expanded their share of North American manufacturing which stands in sharp contrast to the supposition that it would be the United States that would experience a growth in North American production share (Krugman, 1980).
Release date: 2006-05-31 - Articles and reports: 11F0027M2006038Geography: CanadaDescription:
This paper examines the effect of trade liberalization on plant scale, production-run length and product diversification. We first develop a model of trade in differentiated products with multi-product plants. We then present empirical evidence using a large panel of Canadian manufacturing plants and their experience with the 1989 Canada-U.S. Free Trade Agreement (FTA). The model predicts that the bilateral tariff reduction reduces the product diversification of exporting plants, increases the production-run length and has an ambiguous effect on the size of those plants. It also reduces the product diversification and size of non-exporting plants, and has no effect on the production-run length of those plants. The empirical evidence on non-exporting plants provides broad support for the model. The evidence on exporting plants shows that exporters reduce product diversification, and increase production-run length and plant size, but those changes do not appear to be related to tariff cuts. Once in the export markets, plants respond to forces other than tariff cuts. Further tariff cuts have less effect on those plants.
Release date: 2006-05-19 - 7. Global Links: Multinationals, Foreign Ownership and Productivity Growth in Canadian Manufacturing ArchivedArticles and reports: 11-622-M2005009Geography: CanadaDescription:
This paper examines two potential benefits of foreign-controlled plants in the Canadian manufacturing sector: the superior performance of foreign-controlled plants and their productivity spillovers to domestic plants. The paper finds that foreign-controlled plants are more productive, more innovative, more technology intensive, pay higher wages and use more skilled workers. This foreign-ownership advantage is found to be a multinational advantage. What matters for economic performance is whether plants belong to multinational enterprises (MNEs) rather than ownership per se. Canadian multinationals are as productive as foreign multinationals. We also find that MNEs have accounted for a disproportionately large share of productivity growth in the last two decades. Finally, we find robust evidence for productivity spillovers from foreign-controlled plants to domestic-controlled plants arising from increased competition and greater use of new technologies among domestic plants.
Release date: 2005-12-05 - 8. The Effect of Tariff Reductions on Firm Size and Firm Turnover in Canadian Manufacturing ArchivedArticles and reports: 11F0027M2003014Geography: CanadaDescription:
This paper examines substantial productivity gains in Canadian manufacturing resulting from tariff reductions from the Canada-U.S. Free Trade Agreement.
Release date: 2003-09-08 - 9. Regional Manufacturing Employment Volatility in Canada: The Effects of Specialization and Trade ArchivedArticles and reports: 11F0027M2003005Geography: CanadaDescription:
This paper measures the structural characteristics of regional economies; diversity, growth, plant size and export intensity; increases in export orientation; and other aspects of manufacturing employment in different Canadian regions for the period 1976 to 1997.
Release date: 2003-04-11 - Articles and reports: 21-601-M2002059Description:
The purpose of this paper is to examine profitability trends in the Canadian food processing industry, comparing it with other manufacturing industries during the period of 1990 to 1998.
Release date: 2002-11-14
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