Notes

^1.

See Wiktionary, MSN Encarta, Cambridge Dictionaries online for examples of current usage, Cairncross 1982, and Cowie, Heathcott and Bluestone 2003 for more extensive discussions of definitions.

^2.

See Kutchser and Personick, 1986 for a U.S. study of changes in the importance of manufacturing industries.

^3.

The standardization of methods, tools and parts in order to facilitate interchangablilty and replicability.

^4.

GDP and value-added are synonyms for the income earned by factors employed in an industry to transform materials and service inputs into outputs.

^5.

See Baldwin, Durand, and Hosein (2001) for Canadian evidence.

^6.

See Kaci, and Maynard (2002) for a discussion of the use of alternate productivity measures for measuring the impact of productivity on different measures of unit costs. Labour productivity is useful for measuring unit labour costs: total factor productivity takes into account all factor costs. But as Salter (1960) pointed out, empirically, various measures of productivity tend to be closely related.

^7.

By adjusting the Canadian manufacturing price for the dollar, we assume that currency fluctuations are felt broadly across manufacturers in a consistent manner over time.

^8.

It should also be noted that the 1980s also marked a time period when Canada's growth in labour productivity fell behind that of the United States (Baldwin and Gu, 2007).

^9.

The minimum efficient size plant (MES) is calculated as the average size of the largest plants that account for the top 50% of shipments. See Baldwin (1995) for a discussion of this measure.

^10.

A similar change occurred in Mexico—see Appendix 3.

^11.

These labour inputs consist of weighted average growth rates of workers across different experience and education classes. See data section for discussion.