Do Very Large Producers Contribute to the Canada-U.S. Productivity Gap? Evidence from Manufacturing

The views and opinions expressed in the research paper are those of the authors alone and do not represent, in any way, the views or opinions of the Department of Industry or of the Government of Canada.

Industry Canada

Jianmin Tang,
Industry Canada


The existence of a significant difference in the underlying productivity performance of very large producers versus other producers could have wide-reaching implications for the effectiveness of policies designed to improve Canada's productivity performance. This paper examines the productivity performance of plants with 1000 employees or more and determines what contribution this size advantage affords to Canada's relatively weak labour productivity performance in the manufacturing sector. Using Annual Surveys of Manufacturers, the study shows that very large plants in Canada are on average as productive as very large plants in the United States (U.S.) and do not contribute to the Canada-U.S. manufacturing labour productivity gap.


Table of Contents

  1. Introduction
  2. The Canada-U.S. Productivity Gap
  3. Decomposition of the Canada-U.S. Manufacturing Labour Productivity Gap
  4. Conclusions
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