The paper examines the industry characteristics that are related to the shifts in competitiveness, measured as the relative common-currency price ratios between Canadian and US manufacturing prices. We find that relative input costs and relative productivity growth are the two most important...

The paper examines the pricing behaviour of 81 Canadian manufacturing industries from 1974 to 1996. It explores the domestic and foreign factors that affect price formation in Canada and the circumstances in which Canadian prices respond to foreign (U.S.) influences (the law of one price), as...

During the post-1970 period, Canadian manufacturing prices have alternately increased and fallen relative to U.S. prices - just the reverse of the cycle in the Canada - U.S. exchange rate. But not all manufacturing industries have experienced the same amplitude of relative price changes. This...