A Comparison of Canadian and U.S. Productivity Levels: An Exploration of Measurement Issues

52 Pages Posted: 10 Apr 2009

See all articles by John R. Baldwin

John R. Baldwin

Statistics Canada - Microeconomic Analysis Division

Beiling Yan

Statistics Canada

Jean-Pierre Maynard

Statistics Canada

Marc Tanguay

Statistics Canada

Fanny Wong

affiliation not provided to SSRN

Date Written: January 20, 2005

Abstract

This paper examines the level of labour productivity in Canada relative to that of the United States in 1999. In doing so, it addresses two main issues. The first is the comparability of the measures of GDP and labour inputs that the statistical agency in each country produces. Second, it investigates how a price index can be constructed to reconcile estimates of Canadian and U.S. GDP per hour worked that are calculated in Canadian and U.S. dollars respectively. After doing so, and taking into account alternative assumptions about Canada/U.S. prices, the paper provides point estimates of Canada's relative labour productivity of the total economy in 1999 of around 94% that of the United States. The paper points out that at least a 10 percentage point confidence interval should be applied to these estimates. The size of the range is particularly sensitive to assumptions that are made about import and export prices.

Keywords: labour productivity, productivity growth, productivity measures

JEL Classification: D24, J24, N12

Suggested Citation

Baldwin, John R. and Yan, Beiling and Maynard, Jean-Pierre and Tanguay, Marc and Wong, Fanny, A Comparison of Canadian and U.S. Productivity Levels: An Exploration of Measurement Issues (January 20, 2005). Available at SSRN: https://ssrn.com/abstract=1375490 or http://dx.doi.org/10.2139/ssrn.1375490

John R. Baldwin (Contact Author)

Statistics Canada - Microeconomic Analysis Division ( email )

24 Floor - R.H.Coats Building
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Ottawa, Ontaria K1A 0T6
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613-951-8588 (Phone)
613-951-5403 (Fax)

Beiling Yan

Statistics Canada ( email )

Ottawa, Ontario
Canada
613-951-5403 (Phone)

Jean-Pierre Maynard

Statistics Canada ( email )

Ottawa, Ontario
Canada

Marc Tanguay

Statistics Canada

Ottawa, Ontario
Canada

Fanny Wong

affiliation not provided to SSRN ( email )

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