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Labour Productivity Differences Between Domestic and Foreign-controlled Establishments in the Canadian Manufacturing Sector

Naginder Dhaliwal and John Baldwin

Analytical Studies Branch Research Paper Series from Statistics Canada, Analytical Studies Branch

Abstract:

This study uses data to study differences in labour productivity gains across domestic and foreign-controlled establishments in the manufacturing sector for the period 1973 to 1993. In doing so, it also examines the extent to which labour productivity differences exist between small and large establishments and across industry sectors and how they have been changing over time.

The analysis consists of three parts. In the first section, the connection between labour usage and output is examined. This analysis investigates differences in marginal labour propensities for the different subgroups in the short and long-run. Here volatility is seen to be lower for foreign-controlled establishments. The second section examines the difference between the growth in average labour productivity for the same groups. Here foreign-controlled establishments are seen to have the highest growth rates. The third section investigates whether any trend can be found in the rates of growth for large and small, domestic and foreign establishments and finds that these differences have been increasing over time.

Keywords: Business ownership; Business performance and ownership (search for similar items in EconPapers)
Date: 2000-03-01
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (14)

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