Productivity Performance and International Competitiveness: A New Test of an Old Theory

Ehsan Choudhri () and Lawrence Schembri ()

No 99-02, Carleton Economic Papers from Carleton University, Department of Economics

Abstract: The paper uses a modern adaptation of the Ricardian model which incorporates monopolistic competition and multiple factors to derive a MacDougall-type relation between a country’s nternational competitiveness at the industry level and its productivity performance. This relation is implemented empirically for Canada and the United States, using panel data for 25 years and 40 industries. A key finding is that Canadian-U.S. productivity ratio is a significant determinant of relative shares of Canadian firms in both Canadian and U.S. markets. Trade liberalization between Canada and the U.S. also plays an important role in influencing market shares.

Keywords: International Competitiveness; Ricardian Model (search for similar items in EconPapers)
JEL-codes: F11 F12 (search for similar items in EconPapers)
Pages: 33 pages
Date: 1999, Revised 2002-05
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Citations: View citations in EconPapers (2)

Published: – revised version: Productivity Performance and International Competitiveness: An Old Test Reconsidered, Canadian Journal of Economics, Vol. 35, No. 2 (May 2002), pp. 341–362

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