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The Importance of Entry to Canadian Manufacuring, with an Appendix on Measurement Issues

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  • John R. Baldwin

    (Statistics Canada)

  • Desmond Beckstead

    (Statistics Canada)

  • Andrée Girard

    (Statistics Canada)

Abstract

Understanding the importance of the dynamic entry process in the Canadian economy involves measuring size of entry. The main purpose of this paper is to summarise the information that we have on the amount of entry in Canada.The paper also fulfils another purpose. Some studies have focused on cross-country comparisons (Geroski and Schwalbach, 1991: OECD, 2001). Interpretation of the results of these studies is difficult unless methodological issues regarding how entry is measured are addressed. Without an understanding of the extent to which different databases produce different results, international comparisons are difficult to evaluate. Cross-country comparisons that are derived from extremely different data sources may be misleading because of the lack of comparability.Since there is more than one reliable database that can be used to estimate entry in Canada, this paper asks how measured entry rates vary across different Canadian databases. By examining the difference in entry ... L'importance de l'entrée dans le secteur canadien de la fabrication, document accompagné d'une annexe sur les questions de mesure Il faut mesurer l’étendue de l’entrée dans l’économie canadienne pour comprendre l’importance du processus dynamique d’entrée à l’intérieur de cette économie. Le présent document a principalement pour objectif de résumer l’information dont nous disposons sur l’envergure de l’entrée dans l’économie au Canada.Il réalise également un autre objectif. Certaines études sont axées sur des comparaisons entre pays (Geroski et Schwalbach, 1991; OCDE, 2001). Il est difficile d’interpréter les résultats de ces études à moins d’aborder des questions méthodologiques qui se rattachent à la façon de mesurer l’entrée dans l’économie. Il est également difficile d’évaluer des comparaisons au niveau international si l’on ne comprend pas à quel point des bases de données différentes produisent des résultats différents. Les comparaisons entre pays établies à partir de sources de données extrêmement différentes peuvent être trompeuses en raison de leur manque de comparabilité.Parce qu’il existe plus ...

Suggested Citation

  • John R. Baldwin & Desmond Beckstead & Andrée Girard, 2002. "The Importance of Entry to Canadian Manufacuring, with an Appendix on Measurement Issues," OECD Science, Technology and Industry Working Papers 2002/3, OECD Publishing.
    • Handle: RePEc:oec:stiaaa:2002/3-en
    DOI: 10.1787/515653287372
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    References listed on IDEAS

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    1. Lin, Zhengxi & Picot, Garnett & Yates, Janice, 1999. "The Entry and Exit Dynamics of Self-employment in Canada," Analytical Studies Branch Research Paper Series 1999134e, Statistics Canada, Analytical Studies Branch.
    2. Baldwin, John R. & Rafiquzzaman, Mohammed, 1995. "Selection versus evolutionary adaptation: Learning and post-entry performance," International Journal of Industrial Organization, Elsevier, vol. 13(4), pages 501-522, December.
    3. Pakes, Ariel & Ericson, Richard, 1998. "Empirical Implications of Alternative Models of Firm Dynamics," Journal of Economic Theory, Elsevier, vol. 79(1), pages 1-45, March.
    4. Baldwin,John R. & Gorecki,Paul With contributions by-Name:Caves,Richard E. With contributions by-Name:Dunne,Tim With contributions by-Name:Haltiwanger,John, 1998. "The Dynamics of Industrial Competition," Cambridge Books, Cambridge University Press, number 9780521633574, July.
      • Baldwin,John R. & Gorecki,Paul With contributions by-Name:Caves,Richard E. With contributions by-Name:Dunne,Tim With contributions by-Name:Haltiwanger,John, 1995. "The Dynamics of Industrial Competition," Cambridge Books, Cambridge University Press, number 9780521465618, July.
    5. Baldwin, John R., 1996. "Productivity Growth, Plant Turnover and Restructuring in the Canadian Manufacturing Sector," Analytical Studies Branch Research Paper Series 1995087e, Statistics Canada, Analytical Studies Branch.
    6. Mayes,David G. (ed.), 1996. "Sources of Productivity Growth," Cambridge Books, Cambridge University Press, number 9780521554374, July.
    7. John Baldwin & Timothy Dunne & John Haltiwanger, 1998. "A Comparison Of Job Creation And Job Destruction In Canada And The United States," The Review of Economics and Statistics, MIT Press, vol. 80(3), pages 347-356, August.
    8. Steven J. Davis & John C. Haltiwanger & Scott Schuh, 1998. "Job Creation and Destruction," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262540932, December.
    9. Newman, Howard H, 1978. "Strategic Groups and the Structure-Performance Relationship," The Review of Economics and Statistics, MIT Press, vol. 60(3), pages 417-427, August.
    10. Bee Yan Aw & Xiaomin Chen & Mark J. Roberts, 1997. "Firm-level Evidence on Productivity Differentials, Turnover, and Exports in Taiwanese Manufacturing," NBER Working Papers 6235, National Bureau of Economic Research, Inc.
    11. Baldwin, John R. Bian, Lin Dupuy, Richard Gellatly, Guy, 2000. "Failure Rates for New Canadian Firms: New Perspectives on Entry and Exit," Failure Rates for New Canadian Firms: New Perspectives on Entry and Exit, Statistics Canada, Economic Analysis Division, number stcb5e.
    12. John Haltiwanger, 1997. "Measuring and analyzing aggregate fluctuations: the importance of building from microeconomic evidence," Review, Federal Reserve Bank of St. Louis, issue May, pages 55-78.
    13. Agarwal, Rajshree & Gort, Michael, 1996. "The Evolution of Markets and Entry, Exit and Survival of Firms," The Review of Economics and Statistics, MIT Press, vol. 78(3), pages 489-498, August.
    14. David B. Audretsch, 1995. "Innovation and Industry Evolution," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262011468, December.
    15. Baldwin, John R. Harchaoui, Tarek, 2002. "Productivity Growth in Canada," Productivity Growth in Canada, Statistics Canada, Economic Analysis Division, number stcb6e.
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    Citations

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    Cited by:

    1. Sébastien Breau & David L. Rigby, 2010. "International trade and wage inequality in Canada," Journal of Economic Geography, Oxford University Press, vol. 10(1), pages 55-86, January.
    2. Gu, Wulong Sawchuk, Gary Whewell, Lori, 2003. "The Effect of Tariff Reductions on Firm Size and Firm Turnover in Canadian Manufacturing," Economic Analysis (EA) Research Paper Series 2003014e, Statistics Canada, Analytical Studies Branch.
    3. Geurts, Karen & Van Biesebroeck, Johannes, 2016. "Firm creation and post-entry dynamics of de novo entrants," International Journal of Industrial Organization, Elsevier, vol. 49(C), pages 59-104.
    4. Hsieh, Chang-Tai & Li, Nicholas & Ossa, Ralph & Yang, Mu-Jeung, 2020. "Accounting for the new gains from trade liberalization," Journal of International Economics, Elsevier, vol. 127(C).
    5. Mika Maliranta, 2005. "R&D, International Trade and Creative Destruction—Empirical Findings from Finnish Manufacturing Industries," Journal of Industry, Competition and Trade, Springer, vol. 5(1), pages 27-58, January.
    6. Sebastián Fanelli & Juan Carlos Hallak & Yin Yongkun, 2025. "Exporter Survival with Uncertainty and Experimentation," Working Papers 354, Red Nacional de Investigadores en Economía (RedNIE).
    7. John Baldwin & Yanling Wang, 2011. "Plant Size, Nationality, and Ownership Change," International Journal of the Economics of Business, Taylor & Francis Journals, vol. 18(3), pages 351-380, November.
    8. Chang-Tai Hsieh & Nicholas Li & Ralph Ossa & Mu-Jeung Yang, 2016. "Gains from Trade with Flexible Extensive Margin Adjustment," NBER Working Papers 22069, National Bureau of Economic Research, Inc.
    9. Martin-Barroso, David & Nuñez-Serrano, Juan Andres & Turrion, Jaime & Velazquez, Francisco J., 2011. "The European Map of Job Flows," MPRA Paper 33602, University Library of Munich, Germany, revised 2011.
    10. Baldwin, John R., 2005. "Death in the Industrial World: Plant Closures and Capital Retirement," Economic Analysis (EA) Research Paper Series 2005033e, Statistics Canada, Analytical Studies Branch.
    11. Tanja Hethey-Maier & Johannes F. Schmieder, 2013. "Does the Use of Worker Flows Improve the Analysis of Establishment Turnover? Evidence from German Administrative Data," Schmollers Jahrbuch : Journal of Applied Social Science Studies / Zeitschrift für Wirtschafts- und Sozialwissenschaften, Duncker & Humblot, Berlin, vol. 133(4), pages 477-510.
    12. Baldwin, John R. Beckstead, Desmond Brown, W. Mark, 2003. "Hollowing-out, Trimming-down or Scaling-up? An Analysis of Head Offices in Canada, 1999 to 2002," Economic Analysis (EA) Research Paper Series 2003019e, Statistics Canada, Analytical Studies Branch.
    13. Hethey, Tanja & Schmieder, Johannes F., 2010. "Using worker flows in the analysis of establishment turnover : evidence from German administrative data," FDZ Methodenreport 201006_en, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    14. Maliranta, Mika, 2005. "Foreign-owned Firms and Productivity-enhancing Restructuring in Finnish Manufacturing Industries," Discussion Papers 965, The Research Institute of the Finnish Economy.
    15. Maliranta, Mika, . "Micro Level Dynamics of Productivity Growth. An Empirical Analysis of the Great Leap in Finnish Manufacturing Productivity in 1975-2000," ETLA A, The Research Institute of the Finnish Economy, number 38, June.
    16. Sebastián Fanelli & Juan Carlos Hallak, 2020. "Export Survival with Uncertainty and Experimentation," Asociación Argentina de Economía Política: Working Papers 4356, Asociación Argentina de Economía Política.
    17. Baldwin, John R. Gellatly, Guy, 2006. "Innovation Capabilities: The Knowledge Capital Behind the Survival and Growth of Firms," The Canadian Economy in Transition 2006013e, Statistics Canada, Economic Analysis Division.
    18. repec:iab:iabfme:201006(en is not listed on IDEAS
    19. Brons, Lajos, 2004. "On the Ontology of Events in Demographies of Organizations," MPRA Paper 1610, University Library of Munich, Germany, revised 2006.

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