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This paper assesses productivity trends in Canada vis-a-vis the United States from two perspectives. The first one is based on estimates of total factor productivity. The second one decomposes productivity growth into two sources: investment-specific technical change, associated with improvements in the quality of the capital stock, and neutral technical change, associated with the organization of productive activities. The results indicate that investment-specific technical change is the major underlying cause of the pickup in productivity in Canada and the narrowing of the productivity gap with the United States.
Investments: Stocks --- Macroeconomics --- Production and Operations Management --- Industries: Information Technololgy --- Innovation --- Research and Development --- Technological Change --- Intellectual Property Rights: General --- One, Two, and Multisector Growth Models --- Measurement of Economic Growth --- Aggregate Productivity --- Cross-Country Output Convergence --- Economywide Country Studies: U.S. --- Canada --- Macroeconomics: Production --- Production --- Cost --- Capital and Total Factor Productivity --- Capacity --- Labor Economics: General --- Pension Funds --- Non-bank Financial Institutions --- Financial Instruments --- Institutional Investors --- Macroeconomics: Consumption --- Saving --- Wealth --- Technological Change: Choices and Consequences --- Diffusion Processes --- Labour --- income economics --- Investment & securities --- Information technology industries --- Productivity --- Total factor productivity --- Labor --- Stocks --- Consumption --- Financial institutions --- Emerging technologies --- Technology --- Industrial productivity --- Labor economics --- Economics --- United States --- Income economics
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