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- 11. Productivity: What Is It? How Is It Measured? What Has Canada's Performance Been Over the Period 1961 to 2012? ArchivedArticles and reports: 15-206-X2014038Description:
This paper provides an overview of the productivity program at Statistics Canada and a brief description of Canada’s productivity performance. The paper defines productivity and the various measures that are used to investigate different aspects of productivity growth. It describes the difference between partial productivity measures (such as labour productivity) and a more complete measure (multifactor productivity) and the advantages and disadvantages of each. The paper explains why productivity is important. It outlines how productivity growth fits into the growth accounting framework and how this framework is used to examine the various sources of economic growth. The paper briefly discusses the challenges that face statisticians in measuring productivity growth. It also provides an overview of Canada’s long-term productivity performance and compares Canada to the United States—both in terms of productivity levels and productivity growth rates.
Release date: 2014-09-15 - Articles and reports: 15-206-X2014037Description:
This paper presents estimates of effective multifactor productivity (MFP) growth for Canada, the United States, Australia, Japan and selected European Union (EU) countries, based on the EU KLEMS productivity database and the World Input-Output Tables. Effective MFP growth captures the impact of the productivity gains in upstream industries on the productivity growth and international competitiveness of domestic industries, thereby providing an appropriate measure of productivity growth and international competitiveness in the production of final demand products such as consumption, investment and export products. A substantial portion of MFP growth, especially for small, open economies such as Canada’s, is attributable to gains in the production of intermediate inputs in foreign countries. Productivity growth tends to be higher in investment and export products than for the production of consumption products. Technical progress and productivity growth in foreign countries have made a larger contribution to production growth in investment and export products than in consumption products. The analysis provides empirical evidence consistent with the hypothesis that effective MFP growth is a more informative relevant indicator of international competitiveness than is standard MFP growth.
Release date: 2014-09-09 - 13. Revisions to the Multifactor Productivity Accounts ArchivedArticles and reports: 15-206-X2014035Description:
This paper highlights revisions to multifactor productivity (MFP) growth and related variables in the business sector and in individual industries, which resulted from the historical revision of the Canadian System of National Accounts (CSNA) released October 1, 2012, revisions to the labour productivity accounts released October 12, 2012, and changes in the estimation of capital input that were made in order to improve its consistency in industry MFP growth estimates.
The multifactor productivity program produces indexes of MFP and related measures (output, capital input, labour input and intermediate inputs) for the business sector, broad economic sub-sectors, and their constituent industries. The MFP program divides growth in labour productivity into its key determinants: capital intensity (changes in capital per hour worked), investment in human capital, and MFP, which includes technological change, organizational innovation and economies of scale.
Release date: 2014-07-08 - 14. Experimental Measures of Output and Productivity in the Canadian Hospital Sector, 2002 to 2010 ArchivedArticles and reports: 15-206-X2014034Description:
Recent discussions about health care spending have focused on two issues: 1) the extent to which the increase in heath care spending is due to an increase in the quantity as opposed to the price of health care services, and 2) the efficiency and productivity of health care providers (e.g., hospital sectors, office of physicians, and long-term care).
The key to addressing both issues is a direct output measure of health care services—a measure that does not currently exist. In the National Accounts, output of the health care sector is measured by the volume of inputs, which includes labour costs for physicians, nurses and administrative staff, consumption of capital, and intermediate inputs. An input-based output measure assumes that there are no productivity gains in the health care sector. As a result, it does not provide a measure of productivity performance, nor does it allow a decomposition of total health care expenditures into price and output quantity components.
The main objective of this paper is to develop an experimental direct output measure for the Canadian hospital sector that can be used to address those issues. A large number of countries have already constructed a direct output measure of the hospital sector and other healthcare sectors.
Release date: 2014-04-23 - 15. 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 - 17. 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
Data (1)
Data (1) ((1 result))
- 1. The Canadian Productivity Accounts: Data ArchivedTable: 15-003-XDescription:
The Canadian Productivity Accounts: Data is an electronic publication that contains a series of tables on productivity growth and related variables for the business sector and its 51 major sub-sectors based on the North American Industry Classification System. These tables allow users to have a broader perspective on Canadian economic performance. They complement the information available on CANSIM which offers more detail, particularly at the industry level.
Canadian Productivity Accounts (CPA) are responsible for producing, analyzing and disseminating Statistics Canada's official data on productivity and for producing and integrating data on employment, hours worked and capital services consistent with the Canadian System of National Accounts. To this end, the CPA comprise three programs. The quarterly program provides current estimates on labour productivity and labour costs at the aggregate level for 15 industry groups. The annual national program provides yearly estimates on labour productivity, multifactor productivity and several indicators of sources of growth and competitiveness as they apply to the major sectors of the economy and to the industry level. Lastly, the annual provincial program, as an integral part of the Provincial Economic Accounts, provides estimates on employment, hours worked, labour productivity and labour costs at the industry level for each province and territory.
The Canadian Productivity Accounts: Data covers four series of statistical tables:
Table 1: Output, labour compensation, capital cost and cost of intermediate inputs in current dollars
Table 2: Productivity and related measures
Table 3: Productivity and related measures for the business sector, Canada and United States
Table 4: Productivity and related measures for the manufacturing sector, Canada and United States
Productivity measures the efficiency with which inputs (labour and capital in particular) are utilized in production. Productivity measures can be applied to a single input, such as labour productivity (output per hour worked), as well as to multifactor productivity (output per unit of combined labour and capital inputs). Statistics Canada produces these two main measures of productivity, but other productivity ratios can also be measured (e.g., output per unit of capital services).
Release date: 2007-12-06
Analysis (57)
Analysis (57) (0 to 10 of 57 results)
- Articles and reports: 36-28-0001202100500004Description:
The COVID-19 pandemic has changed how production occurs in the economy in two ways. One is the full or partial closure of non-essential activities such as travel, hospitality, arts and entertainment, personal services, airlines, etc. The other is the widespread shift from in-office work to working from home. This Insights article depicts labour productivity growth in Canada and its sources by industry during the COVID-19 pandemic in order to examine the implications these changes may have had on the productivity performance of the economy.
Release date: 2021-05-26 - Articles and reports: 11F0019M2020005Description:
Understanding intangible investments is essential for providing accurate measures of gross fixed capital formation (GFCF), gross domestic product (GDP) and productivity growth, and for understanding the innovation system. Statistical agencies need measures of intangible investment to produce economic statistics on aggregate activity that accurately measure concepts such as GDP, GFCF or savings. The levels of GDP, GFCF and savings will be underestimated to the extent that expenditures are incorrectly classified as intermediate inputs that are fully consumed during the period being measured—and not as investments that are not fully consumed during the period when the expenditures are incurred. Estimates for GDP and productivity growth rates may be similarly underestimated. This paper updates and expands upon the intangible capital estimates presented by Baldwin et al. (2009), who extended already measured intangibles (i.e., research and development [R&D], software, mineral exploration) to include additional asset classes consistent with international research on intangible capital measurement (see Corrado, Hulten and Sichel 2009).
Release date: 2020-02-12 - Articles and reports: 11F0019M2020001Description:
Multifactor productivity (MFP) declined in Canada from 2000 to 2009 and then recovered after. The movements in productivity since 2000 have attracted great attention from researchers and policy makers because productivity is important both for economic growth and for improvements in living standards. This paper applies the stochastic frontier framework to decompose each firm’s MFP into two parts: its technological frontier and its technical efficiency. Change in the aggregate technological frontier refers to improvements in the productivity potential of an economy, i.e., the maximum productivity of an economy if all firms are fully efficient. Aggregate technical efficiency reflects the economy’s capacity to achieve that potential. The results of this decomposition can show whether the movements in productivity after 2000 in Canada were mainly the result of changes in the technological frontier and productivity potential or of changes in the technical efficiency.
Release date: 2020-01-17 - Articles and reports: 11-626-X2019008Description: This article in the Economic Insights series examines how accounting for greenhouse gas emissions as part of economic activity changes the measurement of productivity growth.Release date: 2019-05-08
- 5. Environmentally Adjusted Multifactor Productivity Growth for the Canadian Manufacturing Sector ArchivedArticles and reports: 11F0019M2019013Description: The need to measure both the desirable outputs (goods and services) and the undesirable outputs (emissions of greenhouse gases [GHGs] and criteria air contaminants [CACs]) from economic activity is becoming increasingly important as economic performance and environmental performance become ever more intertwined. Standard measures of multifactor productivity (MFP) growth provide insights into rising standards of living and the performance of economies, but they may be misleading if only desirable outputs are considered. This study presents estimates of environmentally adjusted multifactor productivity (EAMFP) growth using a new comprehensive database. This database contains information on GHG and CAC emissions, as well as on the production activities of Canadian manufacturers.Release date: 2019-05-08
- Articles and reports: 11-626-X2018084Description:
This Economic Insights article examines the changes in productivity dispersion in Canadian manufacturing—that is, the difference between the productivity performance of the most productive plants (frontier plants) and the productivity performance of all remaining plants (non frontier plants). It examines the relationship between changes in productivity dispersion, aggregate manufacturing productivity growth and exchange rate movements.
Release date: 2018-11-06 - Articles and reports: 11F0019M2018409Description:
Labour productivity growth and multifactor productivity (MFP) growth slowed in Canada and other advanced economies after 2000. Several measurement challenges have been suggested as potential explanations for this trend. These include the measurement of intangible capital in a digital economy, the measurement of natural resource capital in the resource extraction sectors, the effect of infrastructure capital and the effect of cyclical fluctuations in the utilization of capital in industries adversely affected by world demand. This paper focuses on the role of these measurement issues in the slower productivity growth observed in Canada.
Release date: 2018-10-29 - Articles and reports: 11F0019M2016373Description:
This paper examines how much of the slowdown in productivity growth observed in Canada’s business sector between the 1990s (1990 to 1999) and the 2000s (2000 to 2014) was due to weaker productivity growth within industries and how much was due to structural adjustment. The analysis makes use of a decomposition method that differs from many of the standard labour productivity decomposition approaches commonly found in the literature and allows the contributions of changes in the importance of individual industries to be calculated.
Release date: 2016-06-13 - Articles and reports: 11F0019M2015372Description: 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
- 10. Empirical Evidence from Canadian Firm-level Data on the Relationship Between Trade and Productivity Performance ArchivedArticles and reports: 11F0027M2015097Description:
Canada’s aggregate productivity performance has closely tracked changes in Canada’s trading environment. To gain a better understanding of the link, the Economic Analysis Division of Statistics Canada has conducted a set of studies that investigate whether and how changes in the trading environment, brought about by trade liberalization policies and exchange-rate movements, contributed to productivity growth. The firm-level analysis provides insights into the productivity dynamics that arise from within-industry growth and restructuring as resources are shifted from declining to growing industries. The paper provides an overview of the key Canadian empirical findings over the last two decades.
Release date: 2015-06-16
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Reference (7)
Reference (7) ((7 results))
- Surveys and statistical programs – Documentation: 15-206-X2008017Description:
This paper provides an overview of the productivity program at Statistics Canada and a brief description of Canada's productivity performance. The paper defines productivity and the various measures that are used to investigate different aspects of productivity growth. It describes the difference between partial productivity measures (such as labour productivity) and a more complete measure (multifactor productivity) and the advantages and disadvantages of each. The paper explains why productivity is important. It outlines how productivity growth fits into the growth accounting framework and how this framework is used to examine the various sources of economic growth. The paper briefly discusses the challenges that face statisticians in measuring productivity growth. It also provides an overview of Canada's long-term productivity performance and compares Canada to the United States - both in terms of productivity levels and productivity growth rates.
Release date: 2008-02-25 - Surveys and statistical programs – Documentation: 15-206-X2007014Description:
The Canadian Productivity Accounts (CPA) of Statistics Canada maintain two multifactor productivity (MFP) programs.
The Major Sector Multifactor Productivity Program develops the indexes of MFP for the total business sector and major industry groups in the business sector.
The Industry Multifactor Productivity Program or the Industry KLEMS Productivity Program develops the industry productivity database that includes MFP indexes, output, capital (K), labour (L), energy (E), materials (M) and services (S) inputs for the individual industries of the business sector at various levels of industry aggregation. This paper describes the methodologies and data sources that are used to construct the major sector MFP indexes and the industry productivity database (or the KLEMS database). More specifically, this paper is meant to:provide a background of the major sector MFP program and the industry KLEMS productivity program;present the methodology for measuring MFP;describe the data sources and data available from the MFP programs;present a quality rating of the industry KLEMS productivity data; anddescribe the research agenda related to the MFP program.
Release date: 2007-12-06 - Surveys and statistical programs – Documentation: 15-206-X2007012Description:
This paper examines the various products associated with the quarterly labour productivity program. It outlines the nature of the volatility in the very short-run estimates and examines properties of the revisions made to the estimates of Canadian labour productivity and its components (gross domestic product and hours worked) since the inception of the program in 2001.
Release date: 2007-10-18 - 4. Multifactor Productivity in Canada: An Evaluation of Alternative Methods of Estimating Capital Services ArchivedSurveys and statistical programs – Documentation: 15-206-X2007009Description:
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 - Notices and consultations: 13-605-X20050018502Description:
The National Accounts Advisory Committee reviews and gives advice on the concepts, methods, plans, standards as well as results associated with Statistics Canada's System of National Accounts.
Release date: 2005-04-11 - Surveys and statistical programs – Documentation: 11F0026M2005003Description:
This paper examines the revision cycle for labour productivity estimates over the period 2000-2003.
Release date: 2005-03-10 - Surveys and statistical programs – Documentation: 15-002-M2001001Description:
This document describes the sources, concepts and methods utilized by the Canadian Productivity Accounts and discusses how they compare with their U.S. counterparts.
Release date: 2004-12-24
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