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- W1974795016 abstract "THIS study is an examination of the factors which explain the inter-industry variation of the productivity of Canadian manufacturing industries relative to the productivity of counterpart industries in the United States. The productivity gap between the manufacturing sectors of Canada and the United States has long been a subject of interest in Canada to economists and laymen alike.1 It is commonly argued that Canadian producers are unable to realize available scale economies because of the small size of the domestic market. Access to the United States market has been hindered by the existence of tariff barriers. Indeed, as early as the I870s, US tariffs were set at high levels, leaving Canadian manufacturers with no 'mass market' in which to sell their products. The most inefficient Canadian producers might have been eliminated by competition from imports were it not for the fact that the Canadian government responded to the high US tariff by raising its own rate of duty on dutiable imports from the already fairly high level of 214% in I878 to 3I'O% in I896. This 'national policy' tariff helped to maintain the existence of inefficiently small production units in Canada. It also stimulated direct investment by American firms in Canadian manufacturing. By the turn of the century, the conversion of Canadian industries to branch plants of the United States was well under way. The role of tariffs in sustaining production units of inefficiently small scale has been a consistent theme in the literature to date on the productivity problem in Canadian manufacturing. However, while this problem has been discussed often, there have been only a few, limited attempts to investigate statistically the hypotheses implicit in the literature. Among these few studies, such analysis is frequently limited to simple correlations, as in the work of Fowler [9], or involves an inappropriate measure of the role of scale economies, as in the studies by West [22] and Postner [I5].2 The findings of East-" @default.
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- W1974795016 date "1980-12-01" @default.
- W1974795016 modified "2023-09-26" @default.
- W1974795016 title "The Determinants of Productivity in Canadian Manufacturing Industries" @default.
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- W1974795016 doi "https://doi.org/10.2307/2098169" @default.
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