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Industrial Structural Change and the Post-2000 Output and Productivity Growth Slowdown: A Canada-U.S. Comparison

Michael-John Almon () and Jianmin Tang ()

International Productivity Monitor, 2011, vol. 22, 44-81

Abstract: Changing foreign and domestic supply and demand conditions have resulted in shifting industrial structures in the Canadian and U.S. economies. This article examines the contribution of individual industries to real GDP and labour productivity growth in the business sector in 1987-2000 and 2000-2008 in the two countries. It highlights the differences that have emerged through a new decomposition technique that is able to decompose real GDP expressed in chained dollars instead of constant dollars. The contribution of each industry is further decomposed in order to identify the role of quantity and price effects in real economic growth and pure productivity and shift effects in the case of labour productivity. This decomposition is able to more precisely identify the sectors and the underlying forces that have either propelled or hindered economic and productivity growth.

Date: 2011
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