Plant Turnover and Productivity Growth in Canadian Manufacturing

Wulong Gu and John Baldwin

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

Abstract:

This paper outlines the size of the turnover in plants that have entered and exited the Canadian manufacturing sector during the three periods: 1973-1979, 1979-1988 and 1988-1997. It also examines the contribution of plant turnover to labour productivity growth in the manufacturing sector over the three periods. Plant turnover makes a significant contribution to productivity growth as more productive entrants replace exiting plants that are less productive. A disproportionately large fraction of the contribution of plant turnover to productivity growth is due to multi-plant or foreign-controlled firms closing down and opening up new plants. The plants opened up by multi-plant or foreign-controlled firms are typically much more productive than those opened by single-plant or domestic-controlled.

Keywords: Business performance and ownership; Economic accounts; Entry; exit; mergers and growth; Manufacturing; Productivity accounts (search for similar items in EconPapers)
Date: 2003-04-02
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Citations: View citations in EconPapers (14)

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https://www150.statcan.gc.ca/n1/en/catalogue/11F0019M2003193 (application/pdf)

Related works:
Journal Article: Plant turnover and productivity growth in Canadian manufacturing (2006)
Working Paper: Plant Turnover and Productivity Growth in Canadian Manufacturing (2002)
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Persistent link: https://EconPapers.repec.org/RePEc:stc:stcp3e:2003193e

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