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Long-term Productivity Growth in Canada and the United States

Author

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  • Baldwin, John R. Gu, Wulong

Abstract

This paper compares long-run growth in labour productivity in Canada and the United States from 1961 to 2006. Over the entire period labour productivity in both countries grew at about the same rate. But Canadian growth exceeded that of the United States up to the early 1980s. Since then, U.S. labour productivity growth has exceeded Canadian growth. The gap has widened, particularly after 2000. The paper also decomposes labour productivity growth into three components' that arising from increases in capital intensity, from increases in the skill level of the labour force (due to changes in labour composition) and a residual (multifactor productivity growth). The first two components (both arising from investment, one in machinery and structures, the other in training) were more important in Canada. The third (the residual often referred to as technological progress) was larger in the United States.

Suggested Citation

  • Baldwin, John R. Gu, Wulong, 2007. "Long-term Productivity Growth in Canada and the United States," The Canadian Productivity Review 2007013e, Statistics Canada, Economic Analysis Division.
    • Handle: RePEc:stc:stcp6e:2007013e
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    File URL: http://www.statcan.gc.ca/bsolc/olc-cel/olc-cel?catno=15-206-X2007013&lang=eng
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    File URL: http://www.statcan.gc.ca/bsolc/olc-cel/olc-cel?catno=15-206-X2007013&lang=eng
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    Citations

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    Cited by:

    1. Danny Leung & Yi Zheng, 2012. "What affects MFP in the long-run? Evidence from Canadian industries," Applied Economics, Taylor & Francis Journals, vol. 44(6), pages 727-738, February.
    2. Macdonald, Ryan, 2007. "Canadian and U.S. Real Income Growth Pre and Post 2000: A Reversal of Fortunes," Economic Analysis (EA) Research Paper Series 2007048e, Statistics Canada, Analytical Studies Branch.
    3. Wulong Gu & Amélie Lafrance, 2010. "Productivity Growth in Canadian and U.S. Regulated Industries," International Productivity Monitor, Centre for the Study of Living Standards, vol. 19, pages 50-65, Spring.
    4. John F. Helliwell, 2001. "Canada: Life beyond the Looking Glass," Journal of Economic Perspectives, American Economic Association, vol. 15(1), pages 107-124, Winter.
    5. 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.
    6. Wulong Gu & Michael Willox, 2018. "Productivity Growth in Canada and the United States: Recent Industry Trends and Potential Explanations," International Productivity Monitor, Centre for the Study of Living Standards, vol. 35, pages 73-94, Fall.

    More about this item

    Keywords

    Economic accounts; Productivity accounts;

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