Has Trend Productivity Growth Increased in Canada?
It is still often argued that, in contrast to the United States where labour productivity growth accelerated markedly in the second half of the 1990s, there is no strong evidence of such acceleration in Canada. This paper argues that a significant acceleration in labour productivity growth also oc...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
| Published: |
Centre for the Study of Living Standards
2003-04-01
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| Series: | International Productivity Monitor |
| Subjects: | |
| Online Access: | http://www.csls.ca/ipm/6/robidoux-wong-e.pdf |
| Summary: | It is still often argued that, in contrast to the United States where labour productivity growth accelerated
markedly in the second half of the 1990s, there is no strong evidence of such acceleration in Canada. This
paper argues that a significant acceleration in labour productivity growth also occurred in Canada but
somewhat later than in the U.S. This view is further examined by estimating Canada’s trend labour
productivity growth within a neo-classical growth accounting framework. Our results suggest that trend
labour productivity growth has indeed increased steadily since the early 1990s, reaching about 2 per cent in
recent years, in line with recent estimates for the United States. This productivity improvement reflects
both increased machinery and equipment capital deepening and TFP growth. |
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| ISSN: | 1492-9759 1492-9767 |