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Industrial Structural Change and the Post-2000 Output and Productivity Growth Slowdown: A Canada-U.S. Comparison

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  • Michael-John Almon
  • Jianmin Tang

Abstract

Changing foreign and domestic supply and demand conditions have resulted in shifting industrial structures in the Canadian and U.S. economies. This article examines the contribution of individual industries to real GDP and labour productivity growth in the business sector in 1987-2000 and 2000-2008 in the two countries. It highlights the differences that have emerged through a new decomposition technique that is able to decompose real GDP expressed in chained dollars instead of constant dollars. The contribution of each industry is further decomposed in order to identify the role of quantity and price effects in real economic growth and pure productivity and shift effects in the case of labour productivity. This decomposition is able to more precisely identify the sectors and the underlying forces that have either propelled or hindered economic and productivity growth.

Suggested Citation

  • Michael-John Almon & Jianmin Tang, 2011. "Industrial Structural Change and the Post-2000 Output and Productivity Growth Slowdown: A Canada-U.S. Comparison," International Productivity Monitor, Centre for the Study of Living Standards, vol. 22, pages 44-81, Fall.
    • Handle: RePEc:sls:ipmsls:v:22:y:2011:4
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    File URL: http://www.csls.ca/ipm/22/IPM-22-Almon-Tang.pdf
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    References listed on IDEAS

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    8. John R. Baldwin & Michael Willox, 2016. "The Industry Origins of Canada's Weaker Labour Productivity Performance and the Role of Structural Adjustment in the Post-2000 Period," International Productivity Monitor, Centre for the Study of Living Standards, vol. 31, pages 19-36, Fall.
    9. Wulong Gu, 2018. "Accounting for Slower Productivity Growth in the Canadian Business Sector after 2000: The Role of Capital Measurement Issues," International Productivity Monitor, Centre for the Study of Living Standards, vol. 34, pages 21-39, Spring.
    10. Matthew Calver and Alexander Murray, 2016. "Decomposing Multifactor Productivity Growth in Canada by Industry and Province, 1997-2014," CSLS Research Reports 2016-19, Centre for the Study of Living Standards.
    11. Jianmin Tang & Weimin Wang, 2015. "Economic Growth in Canada and the United States: Supply-Push or Demand-Pull?," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 61(4), pages 773-798, December.
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