Unbundling Canada's Weak Productivity Performance, A Review of the Issues, Working Paper 2010-03, Economic Research and Policy Analysis Branch Working Paper Series
Strategic Policy Sector
Canada is one of the few OECD countries to trail the United States in both the level and growth rate of productivity over a long period of time (1980–2005). This paper suggests a method for breaking down this productivity gap into three components: differences in allocative efficiency, the effects of scale economies, and a residual. The residual, in turn, is a function of a variety of factors, including management practices, infrastructure, and innovative activities such as R&D.
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