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The article examines the role of multinationals and reallocation in productivity growth in the Canadian manufacturing sector in 2001–2010. It finds that foreign-controlled enterprises were more important than domestically controlled enterprises in overall labour productivity growth for 2001–2010, but the contribution of foreign-controlled enterprises declined after 2006 as a result of an increase in the exits of large and productive foreign-controlled firms during that period. Restructuring in the manufacturing sector intensified after 2006. During 2006–2010, there was an increase in reallocation to enterprises that are more productive and an increase in reallocation of labour to industries that are more capital and intermediate input intensive. The effect of new enterprises displacing exitors also increased after 2006, mostly because of the increased effect of domestic entrants displacing exitors while the effect of foreign entry and exit declined. Offsetting those positive effects of reallocation on labour productivity growth is the negative effect of reallocation of labour to the firms with lower relative capital and intermediate intensities within the same industries. Finally, the article finds that the decline in labour productivity growth after 2006 was partly due to a decline in the productivity contribution of foreign-controlled enterprises as a result of an increase in the exits of large and productive foreign-controlled firms during that period.

Abstract.  In this paper, we explore the linkages between export‐market participation and productivity performance in Canadian manufacturing plants. We also examine differences in the relationship between exporting and productivity for foreign‐controlled as opposed to domestic‐controlled plants, and between younger and older plants. Export participation is associated with improved productivity. The effect is much stronger for domestic‐controlled plants than for foreign‐controlled plants and for younger businesses than for older businesses. We interpret this as evidence that there is a learning effect associated with export activity but that the potential for improving productivity with entry to export markets differs across firms. JEL Classification: F1, O4

In this paper we examine the effect of technological change on the relative demand for skilled workers across Canadian industries. We find that skill upgrading at the aggregate level is less evident in Canada than in the United States and other industrialized economies over the 1981–94 period. Behind this overall trend on skill upgrading, there is substantial variation across industrial sectors. Consistent with the skill‐biased technological change hypothesis, the technology indicators – the stock of patents used by the industry and the age of capital stock – are found to be significantly correlated with skill intensity. JEL Classification: E24, J23, J31, O33 Technologie et demande de travailleurs qualifiés: une analyse au niveau de l'industrie. Ce mémoire examine les effets du changement technologique sur la demande de travailleurs qualifiés dans les industries canadiennes. On montre que l'amélioration du niveau des compétences au niveau agrégé est moins claire au Canada qu'aux Etats‐Unis et dans les autres économies industrialisées au cours de la période 1981–94. Derrière cette tendance générale, il y a cependant des variations importantes entre les secteurs industriels. On trouve que les indicateurs de niveau technologique (le stock de brevets, l'âge du stock de capital) sont co‐reliés positivement au degré d'intensité d'utilisation des compétences – ce qui s'arrime bien avec l'hypothèse du changement technologique liéà une amélioration du niveau des compétences