--- canonical_url: "https://csls.ca/research/the-impact-of-information-and-communication-technology-on-the-productivity-of-the-canadian-transportation-system-a-macroeconomic-approach-for-the-air-and-rail-sectors/" title: "The Impact of Information and Communication Technology on the Productivity of the Canadian Transportation System: A Macroeconomic Approach for the Air and Rail Sectors" author: name: "CSLS" url: "https://csls.ca/author/cslc/" date_published: "2026-07-02T13:16:58+00:00" date_modified: "2026-07-02T13:16:58+00:00" post_type: "research" summary: "" post_tag: - "air transportation" - "Canada" - "growth accounting" - "ICT investment" - "productivity" - "rail transportation" - "transportation" country_focus: - "Canada" province_region: - "National" research_theme: - "Productivity and Economic Measurement" - "Sector/Industry Analysis" - "Technology and Innovation" featured_image: "https://csls.ca/wp-content/uploads/2026/07/old-reports_hero_banner_bg.webp" status: "publish" --- # The Impact of Information and Communication Technology on the Productivity of the Canadian Transportation System: A Macroeconomic Approach for the Air and Rail Sectors Canonical URL: https://csls.ca/research/the-impact-of-information-and-communication-technology-on-the-productivity-of-the-canadian-transportation-system-a-macroeconomic-approach-for-the-air-and-rail-sectors/ # The Impact of Information and Communication Technology on the Productivity of the Canadian Transportation System: A Macroeconomic Approach for the Air and Rail Sectors [Download full PDF report](https://csls.ca/pdf/csls2012-07-1.pdf) Cite this report × Cite this report as: Centre for the Study of Living Standards. 2012. “The Impact of Information and Communication Technology on the Productivity of the Canadian Transportation System: A Macroeconomic Approach for the Air and Rail Sectors.” CSLS Research Report 2012-07. Ottawa. https://csls.ca/research/the-impact-of-information-and-communication-technology-on-the-productivity-of-the-canadian-transportation-system-a-macroeconomic-approach-for-the-air-and-rail-sectors/ ## Author: - Centre for the Study of Living Standards (CSLS) Centre for the Study of Living Standards (CSLS) ## Report 2012-07 June 2012 114 pages ## Related research [Measuring the Appropriate Outcomes for Better Decision-Making: A Framework to Guide the Analysis of Health Policy Matthew Calver March 2016 | Report 2016-03 | 132 pages](https://csls.ca/research/measuring-the-appropriate-outcomes-for-better-decision-making-a-framework-to-guide-the-analysis-of-health-policy-2016-03/) [Living Standards Domain of the Canadian Index of Wellbeing Andrew Sharpe, Christopher Ross November 2011 | Report 2011-17 | 124 pages](https://csls.ca/research/living-standards-domain-of-the-canadian-index-of-wellbeing-2011-17/) [Productivity: Key to Economic Success Centre for the Study of Living Standards (CSLS) March 1998 | Report 1998-01 | 99 pages](https://csls.ca/research/productivity-key-to-economic-success/) [Apprenticeship in Canada: A Training System Under Siege? 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Few efforts have been made, however, to quantify the link between these two variables. This report seeks to address this knowledge gap. It provides a detailed analysis of ICT investment, ICT capital, and productivity trends in Canadian air and rail transportation, comparing these trends to those seen in U.S. air and rail transportation. It then evaluates the role of ICT as a productivity driver in these two sectors. Using industry-level data, we find that the standard neoclassical growth accounting framework does not appear to adequately capture the importance of ICT on air and rail productivity. Econometric approaches using the same data also failed to yield meaningful results, mainly due to the small number of observations, but also possibly due to the level of data aggregation. It is suggested that future work on the topic should focus on econometric approaches using firm-level data or case studies. La productivité et l’utilisation des TIC dans les secteurs canadiens du transport aérien et ferroviaire ont toutes deux augmenté de façon importante durant la période 1997-2010. Peu d’efforts ont toutefois été déployés pour quantifier le lien entre ces deux variables. Ce rapport vise à combler cette lacune. Il propose une analyse détaillée des tendances de l’investissement en TIC, du capital en TIC et de la productivité dans les secteurs canadiens du transport aérien et ferroviaire, en comparant ces tendances à celles observées dans les secteurs américains correspondants. Il évalue ensuite le rôle des TIC comme moteur de productivité dans ces deux secteurs. À l’aide de données sectorielles, nous constatons que le cadre néoclassique standard de comptabilité de la croissance ne semble pas saisir adéquatement l’importance des TIC pour la productivité du transport aérien et ferroviaire. Les approches économétriques utilisant les mêmes données n’ont pas non plus donné de résultats significatifs, principalement en raison du faible nombre d’observations, mais possiblement aussi en raison du niveau d’agrégation des données. Il est suggéré que les travaux futurs sur le sujet portent sur des approches économétriques utilisant des données au niveau de l’entreprise ou des études de cas. [Download full PDF report](https://csls.ca/pdf/csls2012-07-1.pdf)