Productivity performance and international competitiveness: an old test reconsidered

Ehsan Choudhri () and Lawrence Schembri ()

Canadian Journal of Economics, 2002, vol. 35, issue 2, 341-362

Abstract: A modern adaptation of the Ricardian model is used, which incorporates monopolistic competition and multiple factors to derive a MacDougall-type relation between a country's international competitiveness at the industry level and its productivity performance. This relation is implemented empirically for Canada and the United States, using panel data for twenty-five years and forty industries. A key finding is that the Canadian-U.S. productivity ratio is an important determinant of relative shares of Canadian firms in both Canadian and U.S. markets. Trade liberalization between Canada and the United States also plays a significant role in influencing market shares.

JEL-codes: F11 F12 (search for similar items in EconPapers)
Date: 2002
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Citations: View citations in EconPapers (14)

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