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- Articles and reports: 11F0027M2005030Geography: CanadaDescription:
This paper examines the course of profitability of large Canadian-resident enterprises over the period 1990-98. It focuses first on the differences in the profitability of Canadian-controlled and U.S.-controlled enterprises and asks whether there are differences in trends in profitability by country of ownership over the business cycle experienced in the 1990s. It uses micro-economic data on the profitability of large non-integrated firms to investigate the role played by market share in determining profitability in each group and the extent to which profits that deviate from the mean are forced quickly or slowly back to their long-run equilibrium values. Both facets of profit behaviour are related to the nature of competition in the markets served by firms. Finally, it examines the role played by changes in the Canada-U.S. exchange rate in determining profitability in order to understand the extent to which each group uses these changes to adjust their foreign prices and thus to affect reported Canadian profits.
Release date: 2005-03-03 - 2. 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 - Articles and reports: 11-624-M2003005Geography: CanadaDescription:
This paper looks at the size of public infrastructure in Canada, its main components, how it has evolved over the last 40 years, and the extent to which it has contributed to Canada's standard of living and the performance of Canadian businesses.
Release date: 2003-11-12
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Articles and reports (3)
Articles and reports (3) ((3 results))
- Articles and reports: 11F0027M2005030Geography: CanadaDescription:
This paper examines the course of profitability of large Canadian-resident enterprises over the period 1990-98. It focuses first on the differences in the profitability of Canadian-controlled and U.S.-controlled enterprises and asks whether there are differences in trends in profitability by country of ownership over the business cycle experienced in the 1990s. It uses micro-economic data on the profitability of large non-integrated firms to investigate the role played by market share in determining profitability in each group and the extent to which profits that deviate from the mean are forced quickly or slowly back to their long-run equilibrium values. Both facets of profit behaviour are related to the nature of competition in the markets served by firms. Finally, it examines the role played by changes in the Canada-U.S. exchange rate in determining profitability in order to understand the extent to which each group uses these changes to adjust their foreign prices and thus to affect reported Canadian profits.
Release date: 2005-03-03 - 2. 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 - Articles and reports: 11-624-M2003005Geography: CanadaDescription:
This paper looks at the size of public infrastructure in Canada, its main components, how it has evolved over the last 40 years, and the extent to which it has contributed to Canada's standard of living and the performance of Canadian businesses.
Release date: 2003-11-12
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