Productivity in Atlantic Canada: A Review of the Literature

It is well recognized that productivity is the most important long-run determinant of a country’s living standards. It is also the key area of research for the Centre for the Study of Living Standards (CSLS) through our specific productivity studies and through our journal, the International Productivity Monitor. The motivation for this directed research project is to give a University of Ottawa economics student an opportunity to learn about this important topic through working with CSLS researchers. The objective of this directed work project will be to review productivity studies conducted for Atlantic Canada provinces, and thereby contribute to a project on the productivity performance of Newfoundland and Labrador that the CSLS is undertaking for the Government of Newfoundland and Labrador. The project with consist of four stages. First, the student will need to familiarize himself or herself with the general literature on productivity definitions, concepts and frameworks (i.e. growth accounting), and determinants. Second, the student, with the assistance of CSLS Executive Director Andrew Sharpe, will identify the relevant analytical studies that have been conducted on the productivity performance of Atlantic Canada, or on particular provinces in the region. Third, the student will then review these studies, detailing the time period and industry/sector (s) covered, the productivity measure used (e.g. labour, capital and multifactor productivity), the methodology employed (e.g. regression analysis, factor analysis, etc), the results obtained in terms of the key drivers of productivity in the region (e.g. capital deepening, education, innovation, etc.), and the implications of the studies for public policy and private actions. Fourth, the student will develop a synthesis of the results of the literature reviewed, and based on this synthesis make recommendations for future work on productivity in Atlantic Canada.