The Stylized Facts about Slower Productivity Growth in Canada

Download full PDF article

Abstract

This article establishes the stylized facts of Canada’s post-2000 productivity slowdown, providing a comprehensive picture using Statistics Canada business sector data at both aggregate and industry levels (15 industries, 1961-2016). Key findings: TFP accounts for the lion’s share of the post-2000 slowdown; the slowdown was primarily a within-industry phenomenon, not due to resource reallocation; it was concentrated in the goods sector; and manufacturing makes by far the largest industry contribution. The article also shows the reversal post-2010 with productivity growth accelerating in Canada relative to the U.S.

Download full PDF