The Productivity Performance of Atlantic Canada

Abstract

This report examines the productivity performance of Atlantic Canada over the 1981–2007 period, addressing three questions: what has been Atlantic Canada’s productivity performance relative to the Canadian average and OECD countries; what trends characterize the region’s productivity drivers; and what policy changes would help close the productivity gap. The report finds that Atlantic Canada’s aggregate labour productivity improved from 78 per cent of the Canadian average in 1981 to 94 per cent in 2007, largely driven by Newfoundland and Labrador’s mining and oil and gas expansion. The Maritime provinces made only modest progress in closing the gap, and the report examines drivers including machinery and equipment investment, human capital, innovation, scale economies, public infrastructure, and competitive intensity.

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