The Retooling Challenge: Canada's Struggle to Close the Capital Investment Gap

Colin Busby and William Robson
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Colin Busby: C.D. Howe Institute

No 126, e-briefs from C.D. Howe Institute

Abstract: Investment in plant and equipment per worker by business in Canada has long lagged that in the United States and other major developed countries, likely contributing to disappointing productivity growth in Canada. Fiscal and regulatory changes that would increase the rewards to investment and enhance competitive pressures to innovate would help ensure that Canadian workers in all provinces have the tools to keep pace with rivals abroad and achieve high and growing incomes in the years ahead.

Keywords: Fiscal and Tax Competitiveness; Economic Growth and Innovation; Canada; Canadian provinces; business investment; capital spending; new investment per worker; OECD countries (search for similar items in EconPapers)
JEL-codes: E20 (search for similar items in EconPapers)
Pages: 6 pages
Date: 2011-12
New Economics Papers: this item is included in nep-bec and nep-mac
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

Published on the C.D. Howe Institute website, December 2011

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