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  • Articles and reports: 11F0027M2008054
    Geography: Canada
    Description:

    The paper investigates how Canadian manufacturing plants adjust to an increase in low-wage import competition by changing their commodity portfolios. At the commodity level, we distinguish between 'core' versus 'peripheral' and differentiated versus homogeneous commodities. We also account for cost and technological complementarities using input-output linkages between commodities produced by a plant. We document large commodity turnover within plants over the period from 1988 to 1996. The largest changes happened in multi-commodity plants and involved peripheral commodities. The commodities that were affected the most were those commodities that are potentially used as inputs in production of the 'core' commodity; homogeneous (rather than differentiated) commodities; and, commodities with relatively weak input complementarities with the core product. Plants experiencing large import competition shifted their output toward production of their core commodity and away from production of unrelated peripheral commodities.

    Release date: 2008-05-16

  • Articles and reports: 11F0027M2008051
    Geography: Canada
    Description:

    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: 11-622-M2006010
    Geography: Canada
    Description:

    Using data on manufacturing plants operating in Canada for the period 1981 to 1997, we estimate the effect of changes in the level of foreign control upon labour productivity in domestically-controlled plants. We distinguish between foreign control in own industry of domestically-controlled plants and foreign control in industries linked by their supply or use of intermediate inputs. We find that foreign control increases productivity growth in domestically-controlled plants in a way that is consistent with the transfer of technology from foreign suppliers to domestically-controlled plants. The positive productivity effects of foreign control are more pronounced for those plants that outsource more intermediates, and who purchase science-based intermediate inputs (i.e., electronics, machinery and equipment, and chemicals).

    Release date: 2006-04-13
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Articles and reports (3)

Articles and reports (3) ((3 results))

  • Articles and reports: 11F0027M2008054
    Geography: Canada
    Description:

    The paper investigates how Canadian manufacturing plants adjust to an increase in low-wage import competition by changing their commodity portfolios. At the commodity level, we distinguish between 'core' versus 'peripheral' and differentiated versus homogeneous commodities. We also account for cost and technological complementarities using input-output linkages between commodities produced by a plant. We document large commodity turnover within plants over the period from 1988 to 1996. The largest changes happened in multi-commodity plants and involved peripheral commodities. The commodities that were affected the most were those commodities that are potentially used as inputs in production of the 'core' commodity; homogeneous (rather than differentiated) commodities; and, commodities with relatively weak input complementarities with the core product. Plants experiencing large import competition shifted their output toward production of their core commodity and away from production of unrelated peripheral commodities.

    Release date: 2008-05-16

  • Articles and reports: 11F0027M2008051
    Geography: Canada
    Description:

    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: 11-622-M2006010
    Geography: Canada
    Description:

    Using data on manufacturing plants operating in Canada for the period 1981 to 1997, we estimate the effect of changes in the level of foreign control upon labour productivity in domestically-controlled plants. We distinguish between foreign control in own industry of domestically-controlled plants and foreign control in industries linked by their supply or use of intermediate inputs. We find that foreign control increases productivity growth in domestically-controlled plants in a way that is consistent with the transfer of technology from foreign suppliers to domestically-controlled plants. The positive productivity effects of foreign control are more pronounced for those plants that outsource more intermediates, and who purchase science-based intermediate inputs (i.e., electronics, machinery and equipment, and chemicals).

    Release date: 2006-04-13
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