Industry Mix, Plant Turnover and Productivity Growth: A Case Study of the Transportation Equipment Industry in Canada

The transportation equipment industry is one of the few Canadian industries that is as productive as its U.S. counterpart. However, labour productivity growth in the Canadian transportation equipment industry declined from 4.5 per cent per year in 1981-2000 to 1.7 per cent per year in 2000-2007. Thi...

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Main Authors: Kelvin Chan, Jianmin Tang, Wulong Gu
Format: Article
Language:English
Published: Centre for the Study of Living Standards 2011-04-01
Series:International Productivity Monitor
Subjects:
Online Access:http://www.csls.ca/ipm/21/IPM-21-Chan-Tang-Gu.pdf
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author Kelvin Chan
Jianmin Tang
Wulong Gu
author_facet Kelvin Chan
Jianmin Tang
Wulong Gu
author_sort Kelvin Chan
collection DOAJ
description The transportation equipment industry is one of the few Canadian industries that is as productive as its U.S. counterpart. However, labour productivity growth in the Canadian transportation equipment industry declined from 4.5 per cent per year in 1981-2000 to 1.7 per cent per year in 2000-2007. This article investigates whether restructuring and the reallocation of output and resources within the industry after 2000 contributed to this decline. It shows that the dramatic decline in productivity growth was mainly due to the slowdown in productivity growth in sub-industries, which can largely be traced to the decline in labour productivity growth of continuing plants. Finally, the article shows that even if the Canadian industry mix were the same as the U.S. mix, the productivity growth profile of the Canadian transportation equipment industry would not change.
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spelling doaj.art-23b5ac4f93df46078ea23512766528c92022-12-22T01:24:21ZengCentre for the Study of Living StandardsInternational Productivity Monitor1492-97591492-97672011-04-01212447Industry Mix, Plant Turnover and Productivity Growth: A Case Study of the Transportation Equipment Industry in CanadaKelvin Chan0Jianmin Tang1Wulong Gu2Industry CanadaIndustry CanadaStatistics CanadaThe transportation equipment industry is one of the few Canadian industries that is as productive as its U.S. counterpart. However, labour productivity growth in the Canadian transportation equipment industry declined from 4.5 per cent per year in 1981-2000 to 1.7 per cent per year in 2000-2007. This article investigates whether restructuring and the reallocation of output and resources within the industry after 2000 contributed to this decline. It shows that the dramatic decline in productivity growth was mainly due to the slowdown in productivity growth in sub-industries, which can largely be traced to the decline in labour productivity growth of continuing plants. Finally, the article shows that even if the Canadian industry mix were the same as the U.S. mix, the productivity growth profile of the Canadian transportation equipment industry would not change.http://www.csls.ca/ipm/21/IPM-21-Chan-Tang-Gu.pdflabour productivitycanadatransportation industry
spellingShingle Kelvin Chan
Jianmin Tang
Wulong Gu
Industry Mix, Plant Turnover and Productivity Growth: A Case Study of the Transportation Equipment Industry in Canada
International Productivity Monitor
labour productivity
canada
transportation industry
title Industry Mix, Plant Turnover and Productivity Growth: A Case Study of the Transportation Equipment Industry in Canada
title_full Industry Mix, Plant Turnover and Productivity Growth: A Case Study of the Transportation Equipment Industry in Canada
title_fullStr Industry Mix, Plant Turnover and Productivity Growth: A Case Study of the Transportation Equipment Industry in Canada
title_full_unstemmed Industry Mix, Plant Turnover and Productivity Growth: A Case Study of the Transportation Equipment Industry in Canada
title_short Industry Mix, Plant Turnover and Productivity Growth: A Case Study of the Transportation Equipment Industry in Canada
title_sort industry mix plant turnover and productivity growth a case study of the transportation equipment industry in canada
topic labour productivity
canada
transportation industry
url http://www.csls.ca/ipm/21/IPM-21-Chan-Tang-Gu.pdf
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AT jianmintang industrymixplantturnoverandproductivitygrowthacasestudyofthetransportationequipmentindustryincanada
AT wulonggu industrymixplantturnoverandproductivitygrowthacasestudyofthetransportationequipmentindustryincanada