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Business Sector Productivity in Canada: What Do We Know?

Author

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  • Paul Boothe
  • Richard Roy

Abstract

Business sector productivity growth is central to Canadians' future prosperity. This article reviews the performance of the Canadian business sector in improving labour and multifactor productivity and examines possible factors underlying recent developments. The article links weak multifactor productivity growth in the Canadian business sector to the weak innovation performance of Canadian firms. The conclusion to this article describes a research program that Industry Canada, in conjunction with others, is carrying out. The research program seeks to identify the reasons for Canada's poor innovation and productivity performance, in order to shed light on actions that can be undertaken to improve productivity growth.

Suggested Citation

  • Paul Boothe & Richard Roy, 2008. "Business Sector Productivity in Canada: What Do We Know?," International Productivity Monitor, Centre for the Study of Living Standards, vol. 16, pages 3-13, Spring.
    • Handle: RePEc:sls:ipmsls:v:16:y:2008:1
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    References listed on IDEAS

    as
    1. Takeshi Koyama & Stephen S. Golub, 2006. "OECD's FDI Regulatory Restrictiveness Index: Revision and Extension to more Economies," OECD Working Papers on International Investment 2006/4, OECD Publishing.
    2. Coe, David T. & Helpman, Elhanan, 1995. "International R&D spillovers," European Economic Review, Elsevier, vol. 39(5), pages 859-887, May.
    3. Jiann-Chyuan Wang & Kuen-Hung Tsai, 2003. "Productivity Growth and R&D Expenditure in Taiwan's Manufacturing Firms," NBER Working Papers 9724, National Bureau of Economic Research, Inc.
    4. Baldwin, John R. Gu, Wulong, 2006. "Competition, Firm Turnover and Productivity Growth," Economic Analysis (EA) Research Paper Series 2006042e, Statistics Canada, Analytical Studies Branch.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Jean-Francois Arsenault & Andrew Sharpe, 2008. "An Analysis of the Causes of Weak Labour Productivity Growth in Canada since 2000," International Productivity Monitor, Centre for the Study of Living Standards, vol. 16, pages 14-39, Spring.
    2. Michael J. Harper & Alice O. Nakamura & Lu Zhang, 2012. "Difficulties Assessing Multifactor Productivity for Canada," International Productivity Monitor, Centre for the Study of Living Standards, vol. 24, pages 76-84, Fall.
    3. Don Drummond & Evan Capeluck & Matthew Calver, 2015. "The Key Challenge for Canadian Public Policy: Generating Inclusive and Sustainable Economic Growth," CSLS Research Reports 2015-11, Centre for the Study of Living Standards.
    4. Andrew Sharpe & Blair Long, 2012. "Innovation in Canadian Natural Resource Industries: A Systems-Based Analysis of Performance, Policy and Emerging Challenges," CSLS Research Reports 2012-06, Centre for the Study of Living Standards.
    5. Oliver Loertscher & Pau S. Pujolas, 2024. "Canadian productivity growth: Stuck in the oil sands," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 57(2), pages 478-501, May.
    6. Jianmin Tang, 2014. "Are small or large producers driving the Canada‐U.S. labour productivity gap? Recent evidence from manufacturing," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 47(2), pages 517-539, May.
    7. Don Drummond & Annette Ryan & Michael R. Veall, 2013. "Improving Canada's Productivity Performance: The Potential Contribution of Firm-level Productivity Research," International Productivity Monitor, Centre for the Study of Living Standards, vol. 26, pages 86-93, Fall.
    8. Ricardo de Avillez, 2011. "A Detailed Analysis of the Productivity Performance of the Canadian Primary Agriculture Sector," CSLS Research Reports 2011-06, Centre for the Study of Living Standards.

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    More about this item

    Keywords

    multifactor productivity; labour productivity; innovation performance.;
    All these keywords.

    JEL classification:

    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • O21 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Planning Models; Planning Policy
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O51 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - U.S.; Canada

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