--- canonical_url: "https://csls.ca/research/the-mckinsey-global-institute-productivity-studies-lessons-for-canada/" title: "The McKinsey Global Institute Productivity Studies: Lessons for Canada" author: name: "CSLS" url: "https://csls.ca/author/cslc/" date_published: "2026-07-02T13:59:51+00:00" date_modified: "2026-07-02T13:59:51+00:00" post_type: "research" summary: "" post_tag: - "Canada-US comparison" - "competitive intensity" - "financial services" - "productivity" - "retail" - "technology adoption" country_focus: - "Multi-country" province_region: - "National" research_theme: - "Productivity and Economic Measurement" featured_image: "https://csls.ca/wp-content/uploads/2026/07/old-reports_hero_banner_bg.webp" status: "publish" --- # The McKinsey Global Institute Productivity Studies: Lessons for Canada Canonical URL: https://csls.ca/research/the-mckinsey-global-institute-productivity-studies-lessons-for-canada/ # The McKinsey Global Institute Productivity Studies: Lessons for Canada [Download full PDF report](https://csls.ca/pdf/csls2004-10-1.pdf) Cite this report × Cite this report as: Kellison, Matt. 2004. “The McKinsey Global Institute Productivity Studies: Lessons for Canada.” CSLS Research Report 2004-10. Ottawa: Centre for the Study of Living Standards. https://csls.ca/research/the-mckinsey-global-institute-productivity-studies-lessons-for-canada/ ## Author: - Matt Kellison Centre for the Study of Living Standards (CSLS) ## Report 2004-10 November 2004 39 pages ## Related research [Productivity Trends: A Canada-U.S. Comparison Centre for the Study of Living Standards (CSLS) January 1999 | Report 1999-01 | 6 pages](https://csls.ca/research/productivity-trends-a-canada-u-s-comparison/) [New Estimates of Manufacturing Productivity Growth for Canada and the United States Andrew Sharpe March 1999 | Report 1999-02 | 21 pages](https://csls.ca/research/new-estimates-of-manufacturing-productivity-growth-for-canada-and-the-united-states/) [A Comparison of Canadian and U.S. Labour Market Performance, 1989-2000 Andrew Sharpe April 2001 | Report 2001-01 | 29 pages](https://csls.ca/research/a-comparison-of-canadian-and-u-s-labour-market-performance-1989-2000/) [Productivity Trends in Natural Resources Industries in Canada Centre for the Study of Living Standards (CSLS) February 2003 | Report 2003-01a | 69 pages](https://csls.ca/research/productivity-trends-in-natural-resources-industries-in-canada/) [Productivity in the Forest Products Sector: A Review of the Literature Centre for the Study of Living Standards (CSLS) February 2003 | Report 2003-02 | 28 pages](https://csls.ca/research/productivity-in-the-forest-products-sector-a-review-of-the-literature/) [An Analysis of Productivity Trends in the Forest Products Sector in Canada Centre for the Study of Living Standards (CSLS) February 2003 | Report 2003-01b | 64 pages](https://csls.ca/research/an-analysis-of-productivity-trends-in-the-forest-products-sector-in-canada/) [Why Are Americans More Productive Than Canadians? Andrew Sharpe June 2003 | Report 2003-03 | 83 pages](https://csls.ca/research/why-are-americans-more-productive-than-canadians/) [Productivity Growth and Poverty Reduction in Developing Countries Centre for the Study of Living Standards (CSLS) September 2003 | Report 2003-06 | 70 pages](https://csls.ca/research/productivity-growth-and-poverty-reduction-in-developing-countries/) [China’s Productivity Performance and Its Impact on Poverty in the Transition Period Centre for the Study of Living Standards (CSLS) September 2003 | Report 2003-07 | 81 pages](https://csls.ca/research/chinas-productivity-performance-and-its-impact-on-poverty-in-the-transition-period/) [Productivity Growth in Service Industries: A Canadian Success Story Someshwar Rao, Andrew Sharpe, Jianmin Tang February 2004 | Report 2004-01 | 58 pages](https://csls.ca/research/productivity-growth-in-service-industries-a-canadian-success-story/) ## Abstract ## Résumé EN FR Copy link Email LinkedIn The McKinsey Global Institute (MGI) is a think tank based in Washington, D.C. founded in 1990 with the objective of analyzing international productivity levels from both economic and management perspectives. MGI uses microeconomic analysis on a sectorby-sector level to study the effects that industry decisions ultimately have on national productivity. For the most part the productivity drivers identified by MGI can be grouped into three broad areas: competitive factors (concentration, trade protection, deregulation, minimum wages, work rules, and zoning laws); managerial factors (best practice, human capital, capital intensity, and information technology); and demand factors (average income, cyclical factors, and consumer preferences). This paper examines these factors in an attempt to shed light on the causes of Canada-U.S. productivity differences at the industry level. Competitive factors may explain the poor productivity performance of the Canadian financial and cultural service industries relative to their U.S. counterparts, and likewise may explain the high productivity levels of some natural resource industries in Canada relative to the United States. Managerial factors, especially the implementation of new technologies and related processes, may be important in explaining the poor productivity growth in Canada relative to the United States in service industries such as retail trade. Given the similarities between Canada and the United States, the findings of the MGI studies cannot be indiscriminately applied to Canada-U.S. productivity differences at the industry level. However, the MGI studies do put forward a number of useful working hypotheses for analyzing these differences. Le McKinsey Global Institute (MGI) est un groupe de réflexion basé à Washington, D.C., fondé en 1990 dans le but d’analyser les niveaux de productivité internationaux sous des angles à la fois économique et de gestion. Le MGI utilise une analyse microéconomique sectorielle pour étudier les effets que les décisions des industries ont en définitive sur la productivité nationale. Pour l’essentiel, les moteurs de la productivité cernés par le MGI peuvent être regroupés en trois grands domaines : les facteurs concurrentiels (concentration, protection commerciale, déréglementation, salaire minimum, règles de travail et règlements de zonage); les facteurs de gestion (pratiques exemplaires, capital humain, intensité capitalistique et technologie de l’information); et les facteurs de demande (revenu moyen, facteurs cycliques et préférences des consommateurs). Cet article examine ces facteurs afin d’éclairer les causes des écarts de productivité entre le Canada et les États-Unis à l’échelle industrielle. Les facteurs concurrentiels pourraient expliquer la faible performance des industries canadiennes des services financiers et culturels par rapport à leurs homologues américaines, et pourraient également expliquer les niveaux élevés de productivité de certaines industries de ressources naturelles au Canada par rapport aux États-Unis. Les facteurs de gestion, en particulier la mise en œuvre de nouvelles technologies et des processus connexes, pourraient être importants pour expliquer la faible croissance de la productivité au Canada par rapport aux États-Unis dans des industries de services. [Download full PDF report](https://csls.ca/pdf/csls2004-10-1.pdf)