scholarly journals The Effect of Changing Technology Use on Plant Performance in the Canadian Manufacturing Sector

Author(s):  
John R. Baldwin ◽  
David Sabourin
2014 ◽  
Vol 2014 ◽  
pp. 1-8
Author(s):  
Samuel Gamtessa

This study applies the “true fixed effects” panel stochastic frontier methodology to the Canadian KLEMS data set to estimate technical change and technical efficiency in the Canadian manufacturing sector. To account for the endogeneity of capital inputs as well as the possible problems related to omitted variables, a two-stage residual inclusion method is pursued. The first stage is estimated using the dynamic panel GMM method. The results show that Canadian manufacturing industries experienced significant declines in technical efficiencies during the last ten years. This suggests that the observed slowdown in TFP growth during the recent past is partly due to declining technical efficiency.


2006 ◽  
Vol 6 (2) ◽  
pp. 1850085 ◽  
Author(s):  
Gilles Grenier ◽  
Akbar Tavakoli

The deteriorating economic position of low-skilled workers relative to high-skilled workers appears to be one harmful effect of the economic globalization that took place during the 1980s and 1990s. In the present paper, we perform a time series investigation for Canada using as the dependent variable the relative wages of production and non-production workers in the manufacturing sector between 1970 and 2001. The independent variables include R&D, union density, immigration, imports from non-OECD countries, foreign direct investment, capital labor ratio, and number of workers in each group. The results show that the R&D expenditures and union density are two important variables in the explanation of the widening wage gap. The effects of immigration, imports, and FDI on wage inequality are found to be moderate.


1976 ◽  
Vol 4 (3) ◽  
pp. 307-322
Author(s):  
D. G. McFetridge ◽  
J. D. May

During the past twenty-five years, the Canadian federal government has introduced capital cost allowance measures eight times in order to change the direction or level of investment expenditures. Although the effectiveness of these measures has been the subject of a good deal of recent public controversy, no econometric studies exist which measure their impact. In this paper we examine the change in net machinery and equipment investment in the manufacturing sector of the Canadian economy caused by the capital cost allowance measures. We discover the timing and size of the impacts of the measures to be quite different from that which fiscal policy authorities currently believe.


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