Table 3
Contribution to productivity growth gaps, a counter-factual exercise
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| 1984 to 1990 |
1990 to 1996 |
2000 to 2006 |
|
|---|---|---|---|
| percentage points | |||
| Average annual changes in average tariffs between Canada and United States | -0.3 | -0.6 | 0.0 |
| Average annual changes in real exchange rates | 1.6 | -1.9 | 5.5 |
| Actual average annual mean differences in labour productivity growth, entrants less continuing non-exporters | 2.0 | 5.3 | 0.1 |
| Estimated differences | 2.9 | 5.2 | 0.3 |
| Should there be no changes in tariffs and real exchange rates | 4.1 | 4.1 | 4.1 |
| Due to changes in tariff rate | -0.1 | -0.2 | 0.0 |
| Due to changes in real exchange rate | -1.1 | 1.3 | -3.8 |
| Actual average annual mean differences in labour productivity growth, exiters less continuing exporters | -3.1 | -6.9 | -0.2 |
| Estimated differences | -4.7 | -6.6 | -2.7 |
| Should there be no changes in tariffs and real exchange rates | -5.7 | -5.7 | -5.7 |
| Due to changes in tariff rate | 0.1 | 0.2 | 0.0 |
| Due to changes in real exchange rate | 0.9 | -1.0 | 3.0 |
| Source: J.R. Baldwin and B. Yan, 2012, “Export market dynamics and plant-level productivity: Impact of tariff reductions and exchange-rate cycles,” Scandinavian Journal of Economics 114 (3): 831–855. | |||
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