Interpreting Canada's Productivity Performance in the Past Decade: Lessons from Recent Research

Richard Dion
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Richard Dion: Bank of Canada, http://www.bankofcanada.ca/

Bank of Canada Review, 2007, vol. 2007, issue Summer, pages 19-32

Abstract: Dion examines the evolution of Canadian productivity since the mid-1990s, using the United States as a benchmark. During this period, trend productivity growth in Canada remained modest, whereas the U.S. witnessed a strong resurgence. Among the factors identified as potential root causes of Canada's lower productivity performance are a lower investment in information and communications technology, reallocation and adjustment costs associated with large relative price movements, and a weak demand for innovation.

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