The New Economy and Trend Productivity Growth in Canada
This paper reviews the newest developments in our understanding of the New Economy. An emphasis is placed on the American economy, given its role as the leading advanced economy. The paper presents the different views of economists regarding this “unprecedented” performance. The evidence is that...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
| Published: |
Centre for the Study of Living Standards
2000-09-01
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| Series: | International Productivity Monitor |
| Subjects: | |
| Online Access: | http://www.csls.ca/ipm/1/sharpe-1-e.pdf |
| Summary: | This paper reviews the newest developments in our understanding of the New Economy. An
emphasis is placed on the American economy, given its role as the leading advanced economy.
The paper presents the different views of economists regarding this “unprecedented”
performance. The evidence is that the United States success story is due to technological
progress in the computer industry which has accelerated significantly in recent years. The point
of discrepancy lies in the extent by which these new technologies have permeated the economy.
The Canadian and European economies are also placed under examination, and their
performances are compared to that of the United States. The most recent evidence suggests that
the Canadian and European economies will see a significant pick-up in productivity growth over
the next decade. In Canada, the productivity numbers for the first half of 2000 point to a revival
in productivity growth. Labor productivity growth rate (business sector output per hour) is
expected to be in the 2.0-2.5 percent range in Canada over the next decade, a doubling of the rate
of growth experienced in the 1980s and the 1990s. |
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| ISSN: | 1492-9759 1492-9767 |