Multinationals and Reallocation
Productivity Growth in the Canadian Manufacturing Sector, 2001–2010
Bibliographic Data
| ID | 11969447 |
|---|---|
| Authors | Wulong Gu (Statistics Canada, corresponding author), Jiang Li (0009-0003-8355-9941, Office of Chief Economist, Global Affairs Canada, Policy Analyst, Ottawa, Ontario) |
| Year | 2017 |
| Volume | 43 |
| Issue | S2 |
| Pages | S15-S28 |
| Publication date | 2017-03-08 |
| Open Access | No |
| Type | ARTICLE |
| Venue | Canadian Public Policy (JOURNAL) |
| Journal identifiers | ISSN: 0317-0861 • E-ISSN: 1911-9917 |
| Publisher | University of Toronto Press Inc. (UTPress) (PUBLISHER) |
| DOI | 10.3138/cpp.2016-070 |
| OpenAlex | W2592897075 |
| Language | EN |
| Citations received | 1 |
| References cited | 13 |
The article examines the role of multinationals and reallocation in productivity growth in the Canadian manufacturing sector in 2001–2010. It finds that foreign-controlled enterprises were more important than domestically controlled enterprises in overall labour productivity growth for 2001–2010, but the contribution of foreign-controlled enterprises declined after 2006 as a result of an increase in the exits of large and productive foreign-controlled firms during that period. Restructuring in the manufacturing sector intensified after 2006. During 2006–2010, there was an increase in reallocation to enterprises that are more productive and an increase in reallocation of labour to industries that are more capital and intermediate input intensive. The effect of new enterprises displacing exitors also increased after 2006, mostly because of the increased effect of domestic entrants displacing exitors while the effect of foreign entry and exit declined. Offsetting those positive effects of reallocation on labour productivity growth is the negative effect of reallocation of labour to the firms with lower relative capital and intermediate intensities within the same industries. Finally, the article finds that the decline in labour productivity growth after 2006 was partly due to a decline in the productivity contribution of foreign-controlled enterprises as a result of an increase in the exits of large and productive foreign-controlled firms during that period
Business · Capital (architecture · Economic growth · Economics · Foreign capital · Foreign direct investment · Labour economics · Macroeconomics · Manufacturing · Manufacturing sector · Productivity · Restructuring · Firm Innovation and Growth · Global trade and economics · International Business and FDI
| Citations per year | 0.11 |
|---|---|
| Citation span | 2017 - 2017 (1) |
| Highly cited | No |