Export Diversification

Release date: December 11, 2017
Infographic: Export Diversification
Description: Export Diversification

Export diversification refers to the extent to which Canada's export base is broad, in terms of products, trading partner countries or provinces of production. A concentration index, the Hirfindahl-Hirschman index (HHI), has been used as an inverse measure of export diversification.

Export diversification levels in 2016

  • Diversification by product
    • Canadian exported products are diversified by product
  • Diversification by market of destination
    • Export Destination Markets are highly concentrated in the United States
  • Diversification by province of production
    • Exports are highly concentrated within one province of production, namely Ontario

Diversification by product

The map below represents the product diversification levels of provinces and territories based on 2016 Customs data. The main exported products are named.

Newfoundland and Labrador

  1. Crude oil

Prince Edward Island

  1. Potatoes
  2. Seafood products
  3. Aircraft engines

Nova Scotia

  1. Seafood products
  2. Tires
  3. Wood pulp and paper

New Brunswick

  1. Refined petroleum products

Quebec

  1. Aircraft
  2. Aircraft engines and parts
  3. Aluminum
  4. Paper
  5. Other vehicles

Ontario

  1. Motor vehicles
  2. Unwrought gold
  3. Machinery and parts

Manitoba

  1. Oilseeds (canola)
  2. Other vehicles
  3. Cereals (wheat)
  4. Aircraft parts
  5. Pork

Saskatchewan

  1. Potash
  2. Crude oil
  3. Oilseeds (canola)
  4. Legumes
  5. Cereals (wheat)

Alberta

  1. Crude oil

British Columbia

  1. Softwood lumber
  2. Coal
  3. Wood pulp
  4. Copper
  5. Parts of machinery

Yukon

  1. Copper

Northwest Territories

  1. Diamonds

Nunavut

  1. Fish and crustaceans
  2. Works of art
  3. Furskin and artificial fur
  4. Other products of animal origin
2016 Canadian domestic export concentration by geography
Geography HHI
Newfoundland and Labrador 0.44
Prince Edward Island 0.17
Nova Scotia 0.17
New Brunswick 0.34
Quebec 0.05
Ontario 0.17
Manitoba 0.06
Saskatchewan 0.13
Alberta 0.45
British Columbia 0.12
Yukon 0.92
Northwest Territories 1.00
Nunavut 0.09

Notes:
Diversified exports (HHI < 0.15)
Moderately concentrated exports (0.15 ≤ HHI < 0.25)
Highly concentrated exports (HHI ≥ 0.25)

Source: Canadian domestic export concentration, Canada, provinces and territories, annual (CANSIM Table 228-0082)

Did you know?

In 2015, although Canada's export products were diversified by product, Canada remained the least diversified among the G7 member countries.

Diversification by market of destination

Among non-US countries, Canadian exports are diversified by market of destination.

Export market concentration
Reference year HHI - All trading partners HHI - Excluding the U.S.
1988 0.55 0.09
1989 0.55 0.09
1990 0.57 0.08
1991 0.57 0.07
1992 0.6 0.07
1993 0.65 0.08
1994 0.66 0.08
1995 0.63 0.08
1996 0.65 0.07
1997 0.67 0.07
1998 0.72 0.06
1999 0.75 0.06
2000 0.75 0.06
2001 0.75 0.06
2002 0.75 0.06
2003 0.74 0.06
2004 0.72 0.06
2005 0.71 0.06
2006 0.67 0.06
2007 0.63 0.05
2008 0.6 0.05
2009 0.57 0.06
2010 0.56 0.07
2011 0.54 0.07
2012 0.56 0.08
2013 0.58 0.07
2014 0.59 0.06
2015 0.58 0.07
2016 0.57 0.07
Notable events:
  • 1989: Canada-U.S. Free Trade Agreement
  • 1994: NAFTA
  • 2007-2008: Global Financial Crisis
  • 2008-2010: Automotive industry downturn
  • 2010-2014: High Crude oil prices

Source: Canadian domestic export concentration, Canada, provinces and territories, annual (CANSIM Table 228-0082)
Canadian International Merchandise Trade ProgramFootnote 1

Did you know?

In 2016, over ¾ of Canadian domestic exports were destined to the US, leading to a high export concentration level (HHI=0.57)

Diversification by province of production

Canadian exports show a high concentration in terms of provinces of production (in 2016, HHI=0.26).

Provincial share of domestic exports
Geography Provincial share of domestic exports
Newfoundland and Labrador 1.80%
Prince Edward Island 0.20%
Nova Scotia 1.10%
New Brunswick 2.30%
Quebec 16.60%
Ontario 43.80%
Manitoba 2.80%
Saskatchewan 5.80%
Alberta 17.00%
British Columbia 8.40%
Yukon 0.00%
Northwest Territories 0.30%
Nunavut 0.00%
Source: Canadian International Merchandise Trade ProgramFootnote 1
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