Who is to Blame? Canadian Manufacturers and the Absence of Income Per Capita Convergence
The Review of Economics and Statistics, 2003, vol. 85, issue 1, 166-177
No significant convergence between Canadian and American income per capita occurred during the first ninety years of the twentieth century. This lack of convergence does not appear to have been due to technological dependence, input price distortions, or diseconomies of scale within the Canadian manufacturing sector. The evidence presented in this paper is based on total factor productivity measurement, statistical testing, and counterfactual experimentation using data from national statistical agencies and firm-level sources. © 2003 President and Fellows of Harvard College and the Massachusetts Institute of Technology.
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