Archived — Research Summaries: Working Paper 2007-01: Canada's Productivity in Goods Production and Services in International Comparative Perspective

by Robert Inklaar, Marcel Timmer and Bart van Ark.

In this paper, we make a comparison of industry output, inputs and productivity growth and levels of Canada relative to six advanced economies [Australia, France, Germany, Netherlands, United Kingdom (UK) and United States (U.S.)]. One of the salient findings is that labour and total factor productivity (TFP) growth in market services accelerated markedly after 1995 in all Anglo–Saxon countries (Australia, Canada, UK and U.S.), in contrast to the Continental European countries (France, Germany, Netherlands) where this sector remained relatively stagnant. While labour productivity growth in Canada slowed down after 2000, the contribution from market services remained high, with most of the slowdown occurring in goods-producing industries. Market services are also the main factor driving differences in TFP levels relative to the UK and U.S. While productivity levels in goods-producing industries are comparable in Canada relative to the UK and U.S., the level in market services is considerably lower. This is also the case in Australia and the UK, while the Continental European countries are on a par with the UK and U.S.

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