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Labour Productivity Differences Between Domestic and Foreign-controlled Establishments in the Canadian Manufacturing Sector

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  • Dhaliwal, Naginder
  • Baldwin, John R.

Abstract

This study uses data to study differences in labour productivity gains across domestic and foreign-controlled establishments in the manufacturing sector for the period 1973 to 1993. In doing so, it also examines the extent to which labour productivity differences exist between small and large establishments and across industry sectors and how they have been changing over time. The analysis consists of three parts. In the first section, the connection between labour usage and output is examined. This analysis investigates differences in marginal labour propensities for the different subgroups in the short and long-run. Here volatility is seen to be lower for foreign-controlled establishments. The second section examines the difference between the growth in average labour productivity for the same groups. Here foreign-controlled establishments are seen to have the highest growth rates. The third section investigates whether any trend can be found in the rates of growth for large and small, domestic and foreign establishments and finds that these differences have been increasing over time.

Suggested Citation

  • Dhaliwal, Naginder & Baldwin, John R., 2000. "Labour Productivity Differences Between Domestic and Foreign-controlled Establishments in the Canadian Manufacturing Sector," Analytical Studies Branch Research Paper Series 2000118e, Statistics Canada, Analytical Studies Branch.
    • Handle: RePEc:stc:stcp3e:2000118e
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    File URL: https://www150.statcan.gc.ca/n1/en/catalogue/11F0019M2000118
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    References listed on IDEAS

    as
    1. 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.
    2. 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, January.
      • 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, January.
    3. Heckman, James, 2013. "Sample selection bias as a specification error," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 31(3), pages 129-137.
    4. Mayes,David G. (ed.), 1996. "Sources of Productivity Growth," Cambridge Books, Cambridge University Press, number 9780521554374, January.
    5. Sabourin, David & Baldwin, John R. & Diverty, Brent, 1995. "Technology Use and Industrial Transformation: Empirical Perspectives," Analytical Studies Branch Research Paper Series 1995075e, Statistics Canada, Analytical Studies Branch.
    6. Baldwin, John R. & Diverty, Brent, 1995. "Advanced Technology Use in Canadian Manufacturing Establishments," Analytical Studies Branch Research Paper Series 1995085e, Statistics Canada, Analytical Studies Branch.
    7. Baily, Martin Neil & Bartelsman, Eric J & Haltiwanger, John, 1996. "Downsizing and Productivity Growth: Myth or Reality?," Small Business Economics, Springer, vol. 8(4), pages 259-278, August.
    8. 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.
    9. Baldwin, John & Picot, Garnett, 1995. "Employment Generation by Small Producers in the Canadian Manufacturing Sector," Small Business Economics, Springer, vol. 7(4), pages 317-331, August.
    10. Lin, Zhengxi & Picot, Garnett & Pyper, Wendy & Zhengxi, Lin, 1997. "Permanent Layoffs in Canada: Overview and Longitudinal Analysis," Analytical Studies Branch Research Paper Series 1997103e, Statistics Canada, Analytical Studies Branch.
    11. Baldwin, John R. & Raffiquzzaman, Mohammed, 1998. "The Effect of Technology and Trade on Wage Differentials Between Nonproduction and Production Workers in Canadian Manufacturing," Analytical Studies Branch Research Paper Series 1998098e, Statistics Canada, Analytical Studies Branch.
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    Cited by:

    1. Sabourin, David Baldwin, John R. Smith, David, 2003. "Impact of Advanced Technology Use on Firm Performance in the Canadian Food Processing Sector," Economic Analysis (EA) Research Paper Series 2003012e, Statistics Canada, Analytical Studies Branch.
    2. Warren, Paul, 2005. "Profitability of Canadian- Versus U.S.-controlled Enterprises," Economic Analysis (EA) Research Paper Series 2005030e, Statistics Canada, Analytical Studies Branch.
    3. Sabourin, David & Baldwin, John R., 2001. "Impact of the Adoption of Advanced Information and Communication Technologies on Firm Performance in the Canadian Manufacturing Sector," Analytical Studies Branch Research Paper Series 2001174e, Statistics Canada, Analytical Studies Branch.
    4. Erol Taymaz & Ebru Voyvoda & Kamil Yilmaz, 2010. "Global Links and Local Bonds: The Role of Ownership and Size in Productivity Growth," Koç University-TUSIAD Economic Research Forum Working Papers 1020, Koc University-TUSIAD Economic Research Forum.
    5. Baldwin, John R. Gu, Wulong, 2004. "Innovation, Survival and Performance of Canadian Manufacturing Plants," Economic Analysis (EA) Research Paper Series 2004022e, Statistics Canada, Analytical Studies Branch.
    6. Baldwin, John R. Gellatly, Guy, 2007. "Global Links: Multinationals in Canada: An Overview of Research at Statistics Canada," The Canadian Economy in Transition 2007014e, Statistics Canada, Economic Analysis Division.
    7. John Baldwin & W. Brown, 2004. "Regional manufacturing employment volatility in Canada: The effects of specialisation and trade," Economics of Governance, Springer, vol. 83(3), pages 519-541, July.
    8. Handy, Charles R. & Bamford, John A., 2000. "Foreign Investment, Competitiveness And Trade," Proceedings of the 5th Agricultural and Food Policy Systems Information Workshop, 1999: Policy Harmonization and Adjustment in the North American Agricultural and Food Industry 16795, Farm Foundation, Agricultural and Food Policy Systems Information Workshops.
    9. Alla Lileeva, 2010. "The benefits to domestically owned plants from inward direct investment: the role of vertical linkages," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 43(2), pages 574-603, May.
    10. Jianmin Tang & Someshwar Rao, 2003. "Issues and Commentaries Issues et commentaires Are Foreign-Controlled Manufacturing Firms Less R&D-Intensive than Canadian- Controlled Firms?," Canadian Public Policy, University of Toronto Press, vol. 29(1), pages 111-117, March.
    11. Tiff Macklem, 2003. "Future Productivity Growth in Canada: Comparing to the United States," International Productivity Monitor, Centre for the Study of Living Standards, vol. 7, pages 50-57, Fall.
    12. John R. Baldwin & Richard E. Caves & Wulong Gu, 2005. "Responses to Trade Liberalization: Changes in Product Diversification in Foreign- and Domestic-Controlled Plants," Chapters, in: Lorraine Eden & Wendy Dobson (ed.), Governance, Multinationals and Growth, chapter 10, Edward Elgar Publishing.
    13. Rama, Ed & Sabourin, David & Baldwin, John R., 1999. "Growth of Advanced Technology Use in Canadian Manufacturing During the 1990's," Analytical Studies Branch Research Paper Series 1999105e, Statistics Canada, Analytical Studies Branch.
    14. Baldwin, John R. Sabourin, David, 2004. "The Effect of Changing Technology Use on Plant Performance in the Canadian Manufacturing Sector," Economic Analysis (EA) Research Paper Series 2004020e, Statistics Canada, Analytical Studies Branch.

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