IDEAS home Printed from https://ideas.repec.org/a/eaa/aeinde/v8y2008i1_8.html
   My bibliography  Save this article

Knowledge-Based Labor Productivity Improvements: Canada Case Study, 1961-2004

Author

Listed:
  • KHAZABI, Massoud
  • FALLAHI, F.

Abstract

This paper examines the importance of Research and Development activities as a source of growth in labor productivity in the Canadian economy within last four decades. Time series data are used to develop an econometrics model that captures the interaction between labor productivity and R&D, stock of public infrastructure and trade openness. Extensive tests of quality of data, choice of model and structural breaks are performed to enrich the value of the research. Our results suggest that the type of capital involved has a significant effect on the extent of labor productivity and growth improvement. Innovation as the major characterizer of the knowledge based economy improves the labor productivity both in short and long run. The trade openness effect has been discussed in depth consequently.

Suggested Citation

  • KHAZABI, Massoud & FALLAHI, F., 2008. "Knowledge-Based Labor Productivity Improvements: Canada Case Study, 1961-2004," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 8(1), pages 98-106.
    • Handle: RePEc:eaa:aeinde:v:8:y:2008:i:1_8
    as

    Download full text from publisher

    File URL: http://www.usc.es/economet/reviews/aeid818.pdf
    Download Restriction: No.
    ---><---

    References listed on IDEAS

    as
    1. Aschauer, David Alan, 1989. "Is public expenditure productive?," Journal of Monetary Economics, Elsevier, vol. 23(2), pages 177-200, March.
    2. J. Bradford De Long & Lawrence H. Summers, 1991. "Equipment Investment and Economic Growth," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 106(2), pages 445-502.
    3. Canzoneri, Matthew B. & Cumby, Robert E. & Diba, Behzad, 1999. "Relative labor productivity and the real exchange rate in the long run: evidence for a panel of OECD countries," Journal of International Economics, Elsevier, vol. 47(2), pages 245-266, April.
    4. Harchaoui, Tarek Tarkhani, Faouzi, 2005. "Four Decades of Productivity Performance in Canada," The Canadian Productivity Review 2005001e, Statistics Canada, Economic Analysis Division.
    5. Magnus Blomström & Robert E. Lipsey & Mario Zejan, 1996. "Is Fixed Investment the Key to Economic Growth?," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 111(1), pages 269-276.
    6. Peter Hart, 1995. "The Convergence of Labour Productivity in British and German Industries," International Journal of the Economics of Business, Taylor & Francis Journals, vol. 2(3), pages 453-463.
    7. Batstone, Eric, 1986. "Labour and Productivity," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 2(3), pages 32-43, Autumn.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Gary Madden & Scott J. Savage, 1998. "Sources of Australian Labour Productivity Change 1950–1994," The Economic Record, The Economic Society of Australia, vol. 74(227), pages 362-372, December.
    2. Madden, Gary & Savage, Scott J., 1998. "CEE telecommunications investment and economic growth," Information Economics and Policy, Elsevier, vol. 10(2), pages 173-195, June.
    3. Mark Rogers, 2003. "A Survey of Economic Growth," The Economic Record, The Economic Society of Australia, vol. 79(244), pages 112-135, March.
    4. M. Herrerias & Vicente Orts, 2012. "Equipment investment, output and productivity in China," Empirical Economics, Springer, vol. 42(1), pages 181-207, February.
    5. Vito Tanzi & Howell H. Zee, 1997. "Fiscal Policy and Long-Run Growth," IMF Staff Papers, Palgrave Macmillan, vol. 44(2), pages 179-209, June.
    6. Di Giannatale, Sonia & Roa, María José, 2016. "Formal Saving in Developing Economies: Barriers, Interventions, and Effects," IDB Publications (Working Papers) 8107, Inter-American Development Bank.
    7. Shahbaz, Muhammad & Mutascu, Mihai & Tiwari, Aviral Kumar, 2012. "Revisiting the Relationship between Electricity Consumption, Capital and Economic Growth: Cointegration and Causality Analysis in Romania," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 0(3), pages 97-120, September.
    8. Tim Besley, 2001. "From micro to macro: public policies and aggregate economic performance," Fiscal Studies, Institute for Fiscal Studies, vol. 22(3), pages 357-374, September.
    9. de Meulemeester, Jean-Luc & Rochat, Denis, 1995. "A causality analysis of the link between higher education and economic development," Economics of Education Review, Elsevier, vol. 14(4), pages 351-361, December.
    10. Giovanni Bonifati, 2002. "Produzione, investimenti e produttivitˆ. Rendimenti crescenti e cambiamento strutturale nellÕindustria manifatturiera americana (1960-1994)," Moneta e Credito, Economia civile, vol. 55(217), pages 19-54.
    11. Carlos E. Schonerwald da Silva & Matías Vernengo, 2007. "Foreign Exchange, Interest and the Dynamics of Public Debt in Latin America," Working Paper Series, Department of Economics, University of Utah 2007_02, University of Utah, Department of Economics.
    12. Thibaut Dort & Pierre-Guillaume Méon & Khalid Sekkat, 2014. "Does investment spur growth everywhere? Not where institutions are weak," Post-Print CEB, ULB -- Universite Libre de Bruxelles, vol. 67(4), pages 482-505, October.
    13. Diaz-Bautista, Alejandro, 2002. "The role of telecommunications infrastructure and human capital: Mexico´s economic growth and convergence," ERSA conference papers ersa02p102, European Regional Science Association.
    14. Renelt, David, 1991. "Economic growth : a review of the theoretical and empirical literature," Policy Research Working Paper Series 678, The World Bank.
    15. Lars-Hendrik Roller & Leonard Waverman, 2001. "Telecommunications Infrastructure and Economic Development: A Simultaneous Approach," American Economic Review, American Economic Association, vol. 91(4), pages 909-923, September.
    16. Steven M. Sheffrin & Robert K. Triest, 1995. "A new approach to causality and economic growth," Working Papers 95-12, Federal Reserve Bank of Boston.
    17. Capolupo, Rosa, 2009. "The New Growth Theories and Their Empirics after Twenty Years," Economics - The Open-Access, Open-Assessment E-Journal (2007-2020), Kiel Institute for the World Economy (IfW Kiel), vol. 3, pages 1-72.
    18. Robert J. Barro, 1994. "Democracy & Growth," NBER Working Papers 4909, National Bureau of Economic Research, Inc.
    19. Artelaris, Panagiotis & Arvanitidis, Paschalis & Petrakos, George, 2006. "Theoretical and Methodological Study on Dynamic Growth Regions and Factors Explaining their Growth Performance," Papers DYNREG02, Economic and Social Research Institute (ESRI).
    20. repec:hal:spmain:info:hdl:2441/c5gs2rgi93abt1s4jkeabou1 is not listed on IDEAS
    21. Duranton, Gilles & Deo, Stephane, 1999. "Financing Productive Local Public Goods," Journal of Urban Economics, Elsevier, vol. 45(2), pages 264-286, March.

    More about this item

    Keywords

    Labour Productivity; Human Capital; Canada;
    All these keywords.

    JEL classification:

    • C5 - Mathematical and Quantitative Methods - - Econometric Modeling
    • J1 - Labor and Demographic Economics - - Demographic Economics
    • O51 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - U.S.; Canada

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eaa:aeinde:v:8:y:2008:i:1_8. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: M. Carmen Guisan (email available below). General contact details of provider: http://www.usc.es/economet/eaa.htm .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.