IDEAS home Printed from https://ideas.repec.org/a/sls/ipmsls/v45y20234.html
   My bibliography  Save this article

Recent Productivity Trends in Canada: Navigating the Twin Transitions of Green and Digitalization

Author

Listed:
  • Jonathan Barr
  • Peter Foltin
  • Jianmin Tang

Abstract

Canada, like other countries, is undergoing an economic transformation as a result of the green and digital transitions. These megatrends create new challenges and opportunities for productivity growth. The green transition could place downward pressure on productivity growth given the current structure of the Canadian economy. That said, the Porter Hypothesis posits that well-formulated environmental regulations can actually spur innovation, which can in turn stimulate productivity. Canada’s ICT and digitally intensive sectors have seen strong productivity growth since 2000, but Canada’s overall performance in digitally- and R&D-intensive sectors trails other G7 countries. Embracing emerging clean and digital technologies and helping small and medium-sized business adopt them remain important issues to help unlock new productivity opportunities in Canada.

Suggested Citation

  • Jonathan Barr & Peter Foltin & Jianmin Tang, 2023. "Recent Productivity Trends in Canada: Navigating the Twin Transitions of Green and Digitalization," International Productivity Monitor, Centre for the Study of Living Standards, vol. 45, pages 93-119, Fall.
    • Handle: RePEc:sls:ipmsls:v:45:y:2023:4
    as

    Download full text from publisher

    File URL: http://www.csls.ca/ipm/45/IPM_45_Barr.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Erik Brynjolfsson & Daniel Rock & Chad Syverson, 2021. "The Productivity J-Curve: How Intangibles Complement General Purpose Technologies," American Economic Journal: Macroeconomics, American Economic Association, vol. 13(1), pages 333-372, January.
    2. Robert J. Gordon, 2018. "Why Has Economic Growth Slowed When Innovation Appears to be Accelerating?," NBER Working Papers 24554, National Bureau of Economic Research, Inc.
    3. Eli Berman & Linda T. M. Bui, 2001. "Environmental Regulation And Productivity: Evidence From Oil Refineries," The Review of Economics and Statistics, MIT Press, vol. 83(3), pages 498-510, August.
    4. Chad Syverson, 2011. "What Determines Productivity?," Journal of Economic Literature, American Economic Association, vol. 49(2), pages 326-365, June.
    5. David Popp, 2012. "The Role of Technological Change in Green Growth," NBER Working Papers 18506, National Bureau of Economic Research, Inc.
    6. Peter Nicholson, 2009. "Innovation and Business Strategy: Why Canada Falls Short," International Productivity Monitor, Centre for the Study of Living Standards, vol. 18, pages 51-71, Spring.
    7. Pierre St-Amant & David Tessier, 2018. "Firm Dynamics and Multifactor Productivity: An Empirical Exploration," Staff Working Papers 18-15, Bank of Canada.
    8. 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.
    9. Jianmin Tang & Weimin Wang, 2020. "Industry Productivity Performance in G7 Countries after the Global Financial Crisis: A Canadian Perspective," International Productivity Monitor, Centre for the Study of Living Standards, vol. 39, pages 33-52, Fall.
    10. Vincenzo Spiezia, 2012. "ICT investments and productivity: Measuring the contribution of ICTS to growth," OECD Journal: Economic Studies, OECD Publishing, vol. 2012(1), pages 199-211.
    11. Jiang Li & Larry Shute & Jianmin Tang, 2013. "Multifactor Productivity Growwth Estimation in Canada and the United States: Do Different Methodologies Matter?," International Productivity Monitor, Centre for the Study of Living Standards, vol. 26, pages 36-62, Fall.
    12. Popp, David, 2012. "The role of technological change in green growth," Policy Research Working Paper Series 6239, The World Bank.
    13. Gordon, Robert J., 2018. "Why Has Economic Growth Slowed When Innovation Appears To Be Accelerating?," CEPR Discussion Papers 13039, C.E.P.R. Discussion Papers.
    14. Arrow Kenneth J. & Cohen Linda & David Paul A. & Hahn Robert W. & Kolstad Charles D. & Lane Lee & Montgomery W. David & Nelson Richard R. & Noll Roger G. & Smith Anne E., 2009. "A Statement on the Appropriate Role for Research and Development in Climate Policy," The Economists' Voice, De Gruyter, vol. 6(1), pages 1-4, February.
    15. Wulong Gu, 2019. "Frontier Firms, Productivity Dispersion and Aggregate Productivity Growth in Canada," International Productivity Monitor, Centre for the Study of Living Standards, vol. 37, pages 96-119, Fall.
    16. Danny Leung & Césaire Meh & Yaz Terajima, 2008. "Productivity in Canada: Does Firm Size Matter?," Bank of Canada Review, Bank of Canada, vol. 2008(Autumn), pages 7-16.
    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. Czarnitzki, Dirk & Fernández, Gastón P. & Rammer, Christian, 2023. "Artificial intelligence and firm-level productivity," Journal of Economic Behavior & Organization, Elsevier, vol. 211(C), pages 188-205.
    2. Parteka, Aleksandra & Kordalska, Aleksandra, 2023. "Artificial intelligence and productivity: global evidence from AI patent and bibliometric data," Technovation, Elsevier, vol. 125(C).
    3. Nils Grashof & Alexander Kopka, 2023. "Widening or closing the gap? The relationship between artificial intelligence, firm-level productivity and regional clusters," Bremen Papers on Economics & Innovation 2304, University of Bremen, Faculty of Business Studies and Economics.
    4. Sen, Suphi, 2015. "Corporate governance, environmental regulations, and technological change," European Economic Review, Elsevier, vol. 80(C), pages 36-61.
    5. Du, Kerui & Li, Jianglong, 2019. "Towards a green world: How do green technology innovations affect total-factor carbon productivity," Energy Policy, Elsevier, vol. 131(C), pages 240-250.
    6. Barth, Erling & Davis, James C. & Freeman, Richard B. & McElheran, Kristina, 2023. "Twisting the demand curve: Digitalization and the older workforce," Journal of Econometrics, Elsevier, vol. 233(2), pages 443-467.
    7. Zhang, Yijun & Li, Xiaoping & Song, Yi & Jiang, Feitao, 2021. "Can green industrial policy improve total factor productivity? Firm-level evidence from China," Structural Change and Economic Dynamics, Elsevier, vol. 59(C), pages 51-62.
    8. Kuo Zhou & Baicheng Zhou & Mengmeng Yu, 2020. "The impacts of fiscal decentralization on environmental innovation in China," Growth and Change, Wiley Blackwell, vol. 51(4), pages 1690-1710, December.
    9. Natália Barbosa, 2024. "Artificial Intelligence and exporting performance:Firm-level evidence from Portugal," GEE Papers 183, Gabinete de Estratégia e Estudos, Ministério da Economia, revised Sep 2024.
    10. Cherchye, Laurens & Rock, Bram De & Saelens, Dieter & Verschelde, Marijn & Roets, Bart, 2024. "Productive efficiency analysis with unobserved inputs: An application to endogenous automation in railway traffic management," European Journal of Operational Research, Elsevier, vol. 313(2), pages 678-690.
    11. Raffaele Fargnoli, 2020. "Adapting the EU Fiscal Governance to New Macroeconomics and Political Realities," RSCAS Working Papers 2020/03, European University Institute.
    12. Kexu Wu & Zhiwei Tang & Longpeng Zhang, 2022. "Population Aging, Industrial Intelligence and Export Technology Complexity," Sustainability, MDPI, vol. 14(20), pages 1-24, October.
    13. Kim, Keungoui & Bounfour, Ahmed & Nonnis, Alberto & Özaygen, Altay, 2021. "Measuring ICT externalities and their contribution to productivity: A bilateral trade based approach," Telecommunications Policy, Elsevier, vol. 45(2).
    14. Michael Greenstone & John A. List & Chad Syverson, 2011. "The Effects of Environmental Regulation on the Competiveness of U.S. Manufacturing," Working Papers 11-03, Center for Economic Studies, U.S. Census Bureau.
    15. Cassey Lee, . "The Exporting and Productivity Nexus: Does Firm Size Matter?," Chapters, in: Chin Hee Hahn & Dionisius A. Narjoko (ed.), Globalization and Performance of Small and Large Firms, chapter 8, pages VIII-1 - , Economic Research Institute for ASEAN and East Asia (ERIA).
    16. Pravakar Sahoo & Ashwani Bishnoi, 2021. "Investment Slowdown in India: Role of Fiscal-Monetary policy and Economic Uncertainty," IEG Working Papers 439, Institute of Economic Growth.
    17. Naudé, Wim, 2020. "Industrialization under Medieval Conditions? Global Development after COVID-19," IZA Discussion Papers 13829, Institute of Labor Economics (IZA).
    18. Wulong Gu & Michael Willox, 2023. "The Post-2001 Productivity Growth Divergence between Canada and the United States," International Productivity Monitor, Centre for the Study of Living Standards, vol. 45, pages 27-60, Fall.
    19. Naudé, Wim, 2020. "From the Entrepreneurial to the Ossified Economy: Evidence, Explanations and a New Perspective," GLO Discussion Paper Series 539, Global Labor Organization (GLO).
    20. Zhao, Yantong & Said, Rusmawati & Ismail, Normaz Wana & Hamzah, Hanny Zurina, 2024. "Impact of industrial robot on labour productivity: Empirical study based on industry panel data," Innovation and Green Development, Elsevier, vol. 3(2).

    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:sls:ipmsls:v:45:y:2023:4. 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: CSLS (email available below). General contact details of provider: https://edirc.repec.org/data/cslssca.html .

    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.