Has Trend Productivity Growth Increased in Canada?

Abstract

Trend productivity growth is a crucial determinant of future living standards as well as fiscal balances. In this article, Benoit Robidoux and Bing-Sun Wong from Finance Canada examine the issue of whether trend productivity growth has increased in Canada and conclude that in fact it has. If correct, this is indeed a very positive development for Canadians. They point out that business sector output per hour growth in Canada accelerated 0.9 percentage points from 1.1 per cent per year in the 1988-1996 period to 2.0 per cent in 1996-2001, virtually the same acceleration as in the United States. The authors find that Canada experienced a greater pick-up in total factor productivity growth than the United States. Increased production and use of information and communications technologies (ICTs) accounted for more of the U.S. productivity growth acceleration.Canada, Productivity, ICT, Information, Communication, Technology, Resurgence, Acceleration, Aggregate, Growth, Accounting, Growth Accounting