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Regional Productivity Convergence: An Analysis of the Pulp and Paper Industries in U.S., Canada, Finland and Sweden

Jakir Hussain () and Jean-Thomas Bernard ()
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Jakir Hussain: Department of Economics, University of Ottawa, Ottawa, ON
Jean-Thomas Bernard: Department of Economics, University of Ottawa, Ottawa, ON

No 1701E, Working Papers from University of Ottawa, Department of Economics

Abstract: In this paper we investigate the presence of productivity convergence in eight regional pulp and paper industries of U.S. and Canada over the period of 1971-2005. Expectation of productivity convergence in the pulp and paper industries of Canadian provinces and of the states of its southern neighbour is high since they are trading partners with fairly high level of exchanges in both pulp and paper products. Moreover, they share a common production technology that changed very little over the last century. We supplement the North-American regional data with national data for two Nordic countries, Finland and Sweden, which provides a scope to compare the productivity performances of four leading players in global pulp and paper industry. We find evidence in favour of the catch-up hypothesis among the regional pulp and paper industries of U.S. and Canada in our sample. The growth performance is at the advantage of Canadian provinces relative to their U.S. counterparts. However, it is not good enough to surpass the growth rates of this industry in the two Nordic countries.

Keywords: TFP convergence; multilateral TFP index; pulp and paper industry; translog cost function (search for similar items in EconPapers)
JEL-codes: C22 F33 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-eff and nep-his
Date: 2017
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