Home | TNCCS | TNCR | Journal Online | Submissions | Memberships | Conferences | Community | Chinese 中文
Current Issue
Previous Issues
Specials 2010
Proceedings
 Current location: All Articles > Number 1 - 2012 > Industry Mix, Plant Turnover and Productivity Growth: A Case Study of the Electronic and Electrical Product Manufacturing Industry  
Search:
Industry Mix, Plant Turnover and Productivity Growth: A Case Study of the Electronic and Electrical Product Manufacturing Industry
TNC ONLINE   2014-06-27 23:41:08 Author:Kelvin Ka Yin Chan, Wulong Gu and Jianmin Tang Source: Font size:[Large][Middle][Small]
Suggested Citation: 
Chan, Kelvin Ka Yin, Wulong Gu and Jianmin Tang (2012). Industry Mix, Plant Turnover and Productivity Growth: A Case Study of the Electronic and Electrical Product Manufacturing Industry. Transnational Corporations Review. Page 11-37, Volume 4, Number 1, March 2012.
 
Transnational Corporations Review
ISSN 1918-6444 (Print), ISSN 1925-2099 (Online)
Edited by Ottawa United Learning Academy
Published by Denfar Transnational Development
Volume 4, Number 1, March 2012, 11-37
Doi:10.5148/tncr.2012.4102

Authors: Kelvin Ka Yin Chan, Wulong Gu and Jianmin Tang

Abstract: Labor productivity growth in the Canadian electronic and electrical product manufacturing industry declined, from 21% per year in the period 1997-2000, to negative 4% per year in the period 2000-2006.  This paper investigates if the restructuring and the reallocation of market share and resource within the industry following the bursting of the tech bubble in 2000 contributed to the slowdown in productivity growth. The reallocation may be a result of change in the composition of constituent sub-industries (industry mix), the entry of new firms and the exit of existing firms, and/or the growth and decline in continuing firms. This paper discusses that the slowdown in productivity growth in the Canadian electronic and electrical product industry was mainly due to weaker productivity performance of the sub-industries, which can largely be traced to the decline in labor productivity growth of continuing plants.  It finds that the reallocation had some impact, but it was not the primary factor behind the decline. Finally, the paper argues that even if the Canadian industry mix were the same as the U.S. industry mix over this period, the productivity growth profile of the Canadian electronic and electrical product manufacturing industry would not change.

Keywords: Industry mix, plant turnover, productivity growth

Selected References

Baily, M. N., Hulten, C., & Campbell, D. (1992). Productivity Dynamics in Manufacturing Plants, Brookings Papers: Microeconomics 1992, p.187-268.
Baldwin, J., & Gu, W. (2009). Canada's Productivity Performance, 1961-2008: An Update on Long-term Trends, The Canadian Productivity Review.
Baldwin, J., Gu, W., & Yan, B. (2011). Accounting for Slower Productivity Growth in the Canadian Manufacturing Sector after 2000: Evidence from Micro Data, Mimeo, Statistics Canada.
Burt, M (2009). Canada’s Computer and Electronic Product Manufacturing Industry: Industrial Outlook Spring 2009. Retrieved June 1, 2009.
The Council of Canadian Academies (2009). Innovation and Business Strategy: Why Canada Falls Short, Ottawa, Canada.
Hao, L., Rao, S., Tang, J., & Wang, M. (2008). Canada-U.S. Productivity Level Comparisons: New Estimates, Industry Canada Research Paper.
Griliches, Z., and Regev, H. (1995). Firm Productivity in Israeli Industry: 1979-1988. Journal of Econometrics, 65(1), 175-203.
Industry Canada (2008). Canadian Industry Statistics: Computer and Electronic Product Manufacturing (NAICS 334), Performance. Retrieved June 1, 2009.
Sharpe, A. (2008), The Paradox of Market-Oriented Public Policy and Poor Productivity Growth in Canada. in Proceedings of a conference held by the Bank of Canada, A Festschrift in Honour of David Dodge's Contributions to Canadian Public Policy, pp 135-191.  
Tang, J., Rao, S., & Li, M. (2010). Sensitivity of Capital Stock and Multifactor Productivity Estimates to Depreciation Assumptions: A Canada-U.S. Comparison. International Productivity Monitor 20, 22-47.

For members or guest(s) to review this product, please simply register and take your user name and password to get access.

Order the full paper


About Us Recruitment Advertisement Collaboration Sponsorship Publication Ethics Contact Us
OULA & DENFAR Copyright 2009-2020