Using firm-level data, this paper examines the R&D intensity (R&D per unit of output) of foreign-controlled and Canadian-controlled firms based in Canada. The empirical results suggest that foreign-controlled firms, after accounting for the influence of other factors, are less R&D-intensive than...

In this article, Someshwar Rao, Jiamin Tang and Weimin Wang of Industry Canada examine the impact of capital accumulation on Canada's recent productivity record. A key finding is that the widening of the Canada-U.S. labour productivity gap in both the business sector and in manufacturing in the...

This paper analyzes the reasons for the Canada-US labour productivity gap, which is mainly explained by the multifactor productivity (MFP) gap. Based on panel data for 41 industries, the regression results show that differences in the machinery and equipment (M&E) capital-labour ratio, trade...

The objective of this paper is to evaluate the competitive position of Canadian industries vis-à-vis their American counterparts. Our results suggest that recent good economic news and a strong trade performance mask Canada's competitiveness difficulties. The export surge and a big increase in...

The fundamental importance of skills for productivity advance is being increasingly recognized. In this article, Someshwar Rao, Jianmin Tang and Weimin Wang of Industry Canada provide additional evidence of this relationship through a detailed examination of the dynamics of innovation and...

Labour productivity growth in the Canadian business sector has averaged less than 1.0 percent since 2000, more than 40 percent below the average growth rate during 1981-2000. On the other hand, labour productivity growth accelerated in the U.S. in the post-2000 period compared to the average...

This article provides consistent estimates for capital stock and multifactor productivity (MFP) for Canada and the United States across major industries for the 1987-2007 period. For this purpose, capital stock estimates are developed for Canadian and U.S. industries using the same asset...

In Governance, Multinationals and Growth, leading scholars celebrate and build upon the pioneering work of Edward Safarian on multinational enterprises and foreign direct investment. The book explores the linkages among multinationals and foreign direct investment, corporate and public...

The Canadian service sector has performed well in recent years in terms of labour and multifactor productivity growth, both in absolute terms and relative to the United States, offsetting much of the poorer performance of the manufacturing sector. Service sector labour productivity growth has...

The slower productivity growth in Canada relative to that experienced in the United States in the second half of the 1990s has been a matter of great concern to Canadians, with a wide variety of explanations put forward to account for this development. A key issue is whether this slower...