Tales From Two Neighbors: Productivity Growth in Canada and the United States

October 1, 2000

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

This paper assesses productivity trends in Canada vis-a-vis the United States from two perspectives. The first one is based on estimates of total factor productivity. The second one decomposes productivity growth into two sources: investment-specific technical change, associated with improvements in the quality of the capital stock, and neutral technical change, associated with the organization of productive activities. The results indicate that investment-specific technical change is the major underlying cause of the pickup in productivity in Canada and the narrowing of the productivity gap with the United States.

Subject: Consumption, Emerging technologies, Financial institutions, Labor, Production, Productivity, Stocks, Technology, Total factor productivity

Keywords: Canada, Emerging technologies, Equipment Investment, General Equilibrium Model, growth in Canada, levels vis-a-vis, Productivity, productivity boom, productivity change, productivity growth, productivity growth in Canada, productivity recovery, productivity slowdown, productivity trend, Stocks, TFP growth, Total factor productivity, United States, WP

Pages:
23
Volume:
2000
DOI:
https://doi.org/10.5089/9781451858334.001
Issue:
169
Series:
Working Paper No. 2000/169
Stock No:
WPIEA1692000
ISBN:
9781451858334
ISSN:
1018-5941

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