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- 1. Productivity Spillovers from Competitive Reallocation: Evidence from Canadian Manufacturing Plants ArchivedArticles and reports: 15-206-X2009024Description:
This paper uses plant-level data on productivity growth and changes in market share over different periods during the 1970s, 1980s, and 1990s to investigate whether plants with declining market shares obtain productivity spillovers from more successful producers and whether the impact of spillovers is affected by the distance between plants. We are primarily interested in the extent to which productivity externalities moderate the centrifugal forces that separate growing plants from declining rivals because of the productivity advantages enjoyed by the former.
The paper focuses on the productivity performance of plants with declining market shares as potential receivers of productivity spillovers. Two possible sources for these spillovers are examined rival plants operating at the technological frontier and rivals that are actively gaining market share. The analysis advances a model of the externality process in which the productivity of declining plants is influenced by (1) the economic distance of the declining plant from its technological frontier at the beginning of any period, (2) contemporaneous productivity gains in rival plants that are actively wresting market share away from decliners, and (3) the distance between rival plants.
We evaluate the existence and magnitude of these sources of spillovers frontier plants and market-share gainers because of what they reveal about the types of productive information that struggling plants may be able to assimilate from rivals. Spillovers from the plants at the existing frontier are likely to reflect the established best practices of industry leaders; spillovers coming from market-share gainers involve new sources of productive knowledge that emerge as the frontier is actively being re-established. Our model also incorporates geographic information on the proximity of declining plants to both frontier plants and market-share gainers to test whether productivity spillovers are spatially circumscribed. The results provide evidence that productivity improvements in more successful plants benefit their struggling rivals and that these benefits are inversely related to distance; however, the magnitude of spillovers from growing plants to decliners is relatively small. Spillovers do not offer much of a safety net for producers that are losing the productivity race. The paper also shows that declining plants that start out behind the technological frontier are likely to fall further behind, after the impact of mean reversion is taken into account.
Release date: 2009-05-19 - Articles and reports: 11F0027M2008052Geography: CanadaDescription:
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: 11-621-M2005022Geography: CanadaDescription:
This article investigates trends in international trade, production and employment in the textile and clothing industries, from 1992 to 2004. It also examines patterns of trade in textiles and clothing.
Release date: 2005-03-21 - Articles and reports: 88-003-X20040037435Geography: CanadaDescription:
This study looks at growth in labour productivity in manufacturing companies that increased their use of advanced technology during the mid-1990s.
Release date: 2004-10-29 - Articles and reports: 11F0027M2004022Geography: CanadaDescription:
This paper examines the determinants of innovation and the role of innovation in productivity growth, shifts in market share and survival in the Canadian manufacturing sector. It presents a model that examines the effect of innovation on plant performance and plant survival.
Release date: 2004-09-21 - 6. The Effect of Changing Technology Use on Plant Performance in the Canadian Manufacturing Sector ArchivedArticles and reports: 11F0027M2004020Geography: CanadaDescription:
This paper investigates how changes in technology use of individual plants in the Canadian manufacturing sector are related to two measures of performance --productivity growth and market-share growth.
Release date: 2004-07-27 - Articles and reports: 21-601-M2004070Description:
The objective of this study is to provide up-to-date measures of the concentration of the manufacturing industries in the Canadian food-processing sector.
Release date: 2004-07-09 - 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 - 9. 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 - 10. The Importance of Entry to Canadian Manufacturing with an Appendix on Measurement Issues ArchivedArticles and reports: 11F0019M2002189Geography: CanadaDescription:
Understanding the importance of the dynamic entry process in the Canadian economy involves measuring size of entry. The main purpose of this paper is to summarize the information we have on the amount of entry in Canada.
The paper also fulfils another purpose. Some studies have focused on cross-country comparisons (Geroski and Schwalbach 1991; OECD 2001). Interpretation of the results of these studies is difficult unless methodological issues regarding how entry is measured are addressed. Without an understanding of the extent to which different databases produce different results, international comparisons are difficult to evaluate. Cross-country comparisons that are derived from extremely different data sources may be misleading because of the lack of comparability.
Since there is more than one reliable database that can be used to estimate entry in Canada, this paper asks how measured entry rates vary across different Canadian databases. By examining the difference in entry rates produced by these databases, we provide an estimate of the range or confidence interval that should be used in evaluating whether there are real differences in measured entry rates across countries. We also offer guidance as to the questions that should be asked about the databases used by researchers who conduct international studies. Finally, we make suggestions as to areas of comparison on which international studies should focus.
Release date: 2002-05-29
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Analysis (15)
Analysis (15) (0 to 10 of 15 results)
- 1. Productivity Spillovers from Competitive Reallocation: Evidence from Canadian Manufacturing Plants ArchivedArticles and reports: 15-206-X2009024Description:
This paper uses plant-level data on productivity growth and changes in market share over different periods during the 1970s, 1980s, and 1990s to investigate whether plants with declining market shares obtain productivity spillovers from more successful producers and whether the impact of spillovers is affected by the distance between plants. We are primarily interested in the extent to which productivity externalities moderate the centrifugal forces that separate growing plants from declining rivals because of the productivity advantages enjoyed by the former.
The paper focuses on the productivity performance of plants with declining market shares as potential receivers of productivity spillovers. Two possible sources for these spillovers are examined rival plants operating at the technological frontier and rivals that are actively gaining market share. The analysis advances a model of the externality process in which the productivity of declining plants is influenced by (1) the economic distance of the declining plant from its technological frontier at the beginning of any period, (2) contemporaneous productivity gains in rival plants that are actively wresting market share away from decliners, and (3) the distance between rival plants.
We evaluate the existence and magnitude of these sources of spillovers frontier plants and market-share gainers because of what they reveal about the types of productive information that struggling plants may be able to assimilate from rivals. Spillovers from the plants at the existing frontier are likely to reflect the established best practices of industry leaders; spillovers coming from market-share gainers involve new sources of productive knowledge that emerge as the frontier is actively being re-established. Our model also incorporates geographic information on the proximity of declining plants to both frontier plants and market-share gainers to test whether productivity spillovers are spatially circumscribed. The results provide evidence that productivity improvements in more successful plants benefit their struggling rivals and that these benefits are inversely related to distance; however, the magnitude of spillovers from growing plants to decliners is relatively small. Spillovers do not offer much of a safety net for producers that are losing the productivity race. The paper also shows that declining plants that start out behind the technological frontier are likely to fall further behind, after the impact of mean reversion is taken into account.
Release date: 2009-05-19 - Articles and reports: 11F0027M2008052Geography: CanadaDescription:
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: 11-621-M2005022Geography: CanadaDescription:
This article investigates trends in international trade, production and employment in the textile and clothing industries, from 1992 to 2004. It also examines patterns of trade in textiles and clothing.
Release date: 2005-03-21 - Articles and reports: 88-003-X20040037435Geography: CanadaDescription:
This study looks at growth in labour productivity in manufacturing companies that increased their use of advanced technology during the mid-1990s.
Release date: 2004-10-29 - Articles and reports: 11F0027M2004022Geography: CanadaDescription:
This paper examines the determinants of innovation and the role of innovation in productivity growth, shifts in market share and survival in the Canadian manufacturing sector. It presents a model that examines the effect of innovation on plant performance and plant survival.
Release date: 2004-09-21 - 6. The Effect of Changing Technology Use on Plant Performance in the Canadian Manufacturing Sector ArchivedArticles and reports: 11F0027M2004020Geography: CanadaDescription:
This paper investigates how changes in technology use of individual plants in the Canadian manufacturing sector are related to two measures of performance --productivity growth and market-share growth.
Release date: 2004-07-27 - Articles and reports: 21-601-M2004070Description:
The objective of this study is to provide up-to-date measures of the concentration of the manufacturing industries in the Canadian food-processing sector.
Release date: 2004-07-09 - 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 - 9. 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 - 10. The Importance of Entry to Canadian Manufacturing with an Appendix on Measurement Issues ArchivedArticles and reports: 11F0019M2002189Geography: CanadaDescription:
Understanding the importance of the dynamic entry process in the Canadian economy involves measuring size of entry. The main purpose of this paper is to summarize the information we have on the amount of entry in Canada.
The paper also fulfils another purpose. Some studies have focused on cross-country comparisons (Geroski and Schwalbach 1991; OECD 2001). Interpretation of the results of these studies is difficult unless methodological issues regarding how entry is measured are addressed. Without an understanding of the extent to which different databases produce different results, international comparisons are difficult to evaluate. Cross-country comparisons that are derived from extremely different data sources may be misleading because of the lack of comparability.
Since there is more than one reliable database that can be used to estimate entry in Canada, this paper asks how measured entry rates vary across different Canadian databases. By examining the difference in entry rates produced by these databases, we provide an estimate of the range or confidence interval that should be used in evaluating whether there are real differences in measured entry rates across countries. We also offer guidance as to the questions that should be asked about the databases used by researchers who conduct international studies. Finally, we make suggestions as to areas of comparison on which international studies should focus.
Release date: 2002-05-29
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