What Explains the Canada-US Labour Productivity Gap?

Rao, Someshwar; Tang, Jianmin; Wang, Weimin

doi:10.3138/cpp.34.2.163

Cited by 20 publications

(10 citation statements)

References 22 publications

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“…Computationally, the cross-sectional fixed effects cannot be used together with period SUR. We follow Rao et al (2008) in grouping industries with similar characteristics and using group dummies to control for the effect of differences in inter-group characteristics. The original industry-level data were categorized using the North American Industry Classification System (NAICS).…”

Section: Estimation Methodologymentioning

confidence: 99%

On investment and exchange-rate movements

Ng¹,

Souare²

2014

Applied Economics

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We investigate the ways in which permanent exchange-rate changes may affect investment by influencing domestic and foreign revenue, the cost of imported variable inputs and the investment price of imported capital goods. We find that the revenue and investment-price channels have a quantitatively greater effect on investment than the cost channel. The negative effect of the revenue channel, which affects the marginal profitability of capital, outweighs the positive effect of the investment-price channel, which affects the marginal cost of capital, implying that exchange-rate appreciation has a net negative influence on investment. The estimation results are robust to different approaches to extracting the permanent components of exchange rates.

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Section: Estimation Methodologymentioning

confidence: 99%

On investment and exchange-rate movements

Ng¹,

Souare²

2014

Applied Economics

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“…5 As mentioned in Rao et al (2008), applied innovation or adoption and diffusion of new and state-of-art technologies are influenced by both M&E capital and human capital. The coefficients on MEI and HUM are expected to have a positive sign.…”

Section: Empirical Estimation Methodologymentioning

confidence: 99%

“…2 As discussed in Section III, there is a substantial variability in both the cross-sectional and time-series dimension of the data for the TFP growth and other explaining variables. 3 A recent study by Rao et al (2008) has identified the M&E capital intensity gap as the dominant source of the Canada-US TFP gap.…”

Section: Introductionmentioning

confidence: 99%

What determines productivity performance of telecommunications services industry? A cross-country analysis

Ng¹

2012

Applied Economics

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This article investigates the key factors that determine the productivity performance of telecommunications services industry. A simple theoretical model is used to illustrate that the Total Factor Productivity (TFP) growth is attributable to the effects of scale economies, market competition and technical change. We then examine empirically the effect of various factors on the TFP growth in the industry using panel data in 12 Organization for Economic Co-operation and Development (OECD) countries for the period 1983 through 2003. The empirical results are consistent with the theoretical prediction. A new finding in this article is that higher machinery and equipment (M&E) capital intensity and human capital contribute to higher TFP growth in the telecommunications services industry. The decomposition analysis also suggests that technical change induced by changes in M&E capital intensity and human capital are important sources of productivity performance in the industry across the OECD countries, contributing to about 20-50% and 2-7% of TFP growth, respectively. These findings highlight the importance of improving the conditions for M&E capital investment and the quality of human capital, which in turn could facilitate the adoption of new technologies and enhance the productivity in the industry.

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“…Slow or no growth in TFP appears to explain this trend [1]. Gordon [2] observes that the TFP index in 2011 was at the same level as its early 1970s levels.…”

Section: Introductionmentioning

confidence: 99%

“…There is no clear explanation as to why TFP is not growing. The gap between Canada and US TFP growth may be explained by the gap in materials and equipment intensity [1]. Lee and Tang [3] link the productivity gap in the manufacturing sector relative to that of USA to capacity utilization, labour quality, and & gaps.…”

Section: Introductionmentioning

confidence: 99%

Technical Efficiency and Technical Change in Canadian Manufacturing Industries

Gamtessa

2014

Economics Research International

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This study applies the "true fixed effects" panel stochastic frontier methodology to the Canadian KLEMS data set to estimate technical change and technical efficiency in the Canadian manufacturing sector. To account for the endogeneity of capital inputs as well as the possible problems related to omitted variables, a two-stage residual inclusion method is pursued. The first stage is estimated using the dynamic panel GMM method. The results show that Canadian manufacturing industries experienced significant declines in technical efficiencies during the last ten years. This suggests that the observed slowdown in TFP growth during the recent past is partly due to declining technical efficiency.

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What Explains the Canada-US Labour Productivity Gap?

Cited by 20 publications

References 22 publications

On investment and exchange-rate movements

On investment and exchange-rate movements

What determines productivity performance of telecommunications services industry? A cross-country analysis

Technical Efficiency and Technical Change in Canadian Manufacturing Industries

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