Download or read book Exchange Rate Fluctuations and the Competitiveness of the Canadian Manufacturing Sector written by Mathieu Frigon and published by . This book was released on 2013 with total page 9 pages. Available in PDF, EPUB and Kindle. Book excerpt: The strengthening of the Canadian dollar against the U.S. dollar over the past 10 years has led to numerous discussions in Canada about the "Dutch disease." This term refers to the notion that an economic boom in commodities leads to a rise in the exchange rate that harms the competitiveness of the manufacturing sector's exports. Eventually this phenomenon can lead to a fairly large-scale deindustrialization of a national economy. In this context, the purpose of this paper is to clarify the role that exchange rate fluctuations play in the changing competitiveness of the Canadian manufacturing sector. First, the paper analyzes changes in this sector in Canada and in selected industrialized countries. Next, for all of these countries, it examines the competitiveness of this sector, measured by unit labour cost, and compares the impacts of various factors, including the exchange rate, on this cost. Lastly, the paper draws some conclusions about the role of the exchange rate in the decline in the competitiveness of the Canadian manufacturing sector.
Download or read book Exchange Rate Cycles and Canada U S Manufacturing Prices written by John R. Baldwin and published by Statistics Canada. This book was released on 2006-01-01 with total page 27 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Exchange Rate Fluctuations and the Competitiveness of the Canadian Manufacturing Sector written by and published by . This book was released on 2013 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: The strengthening of the Canadian dollar against the U.S. dollar over the past 10 years has led to numerous discussions in Canada about the "Dutch disease." This term refers to the notion that an economic boom in commodities leads to a rise in the exchange rate that harms the competitiveness of the manufacturing sector's exports. Eventually this phenomenon can lead to a fairly large-scale deindustrialization of a national economy. In this context, the purpose of this paper is to clarify the role that exchange rate fluctuations play in the changing competitiveness of the Canadian manufacturing sector. First, the paper analyzes changes in this sector in Canada and in selected industrialized countries. Next, for all of these countries, it examines the competitiveness of this sector, measured by unit labour cost, and compares the impacts of various factors, including the exchange rate, on this cost. Lastly, the paper draws some conclusions about the role of the exchange rate in the decline in the competitiveness of the Canadian manufacturing sector.
Download or read book Adjustment to International Competition written by Richard E. Caves and published by Economic. This book was released on 1990 with total page 90 pages. Available in PDF, EPUB and Kindle. Book excerpt: This report builds on 2 types of research on the structure and performance of Canadian manufacturing industries. One line addresses industries of domestic producers who serve the small Canadian market in competition with imports and is concerned with the productive efficiency of these industries but not with their short-run responses to international competition. The other line concerns the short-run sensitivity of responses of the manufacturing industries' prices, output, and employment levels to disturbances, focused on responses to domestic disturbances but not international. Using annual data on many individual industries, the study builds a statistical model of adjustments to changes in international competition such as changes in prices and varieties of importable goods, and in Canadian tariffs and the exchange rate. It tracks the effects of those changes on the selling prices of Canadian producers, quantities of imports and exports, and the key input decisions of employment and capital expenditures. It draws conclusions about these adjustment processes for the typical manufacturing industry but also shows how these adjustments vary among sectors and types of industries.
Download or read book Exchange Rate Cycles and Canada U S Manufacturing Prices written by John R. Baldwin and published by . This book was released on 2009 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: The paper examines the industry characteristics that are related to the shifts in competitiveness, measured as the relative common-currency price ratios between Canadian and US manufacturing prices. We find that relative input costs and relative productivity growth are the two most important factors influencing changes in relative Canada/US prices. Competitive pressures emanating from trade are important determinants of the extent to which relative productivity differences are passed through to cross-country relative prices. We also find that the magnitude of domestic market competition and export intensity affects the short-run relative price shifts over the cycle of exchange rate.
Download or read book Exchange Rates and International Competitiveness of the Canadian Economy written by Richard G. Harris and published by . This book was released on 1992 with total page 80 pages. Available in PDF, EPUB and Kindle. Book excerpt: This document presents background information on the competitiveness concept. It discusses the equilibrium exchange rates and the current account. It also looks at short-run effects of exchange-rate changes. It provides a summary and policy conclusions.
Download or read book The Impact of Exchange Rate Fluctuations on U S Trade Competitiveness written by Pao-Hwa Chan and published by Ann Arbor, Mich. : University Microfilms International. This book was released on 1996 with total page 264 pages. Available in PDF, EPUB and Kindle. Book excerpt: This study applies two different econometric methodologies to investigate the impact of exchange rate changes on the trade prices and quantities using the aggregated and industry level data of the United States, Canada, and Japan in order to compare the similarities and differences in countries as well as industries. The dynamic responses of these trade prices and quantities become very interesting and valuable for the further study of the effect of exchange rate changes, because the most important feature of this study is that the value of the U.S. dollar depreciates in terms of the Japanese yen but at the same time appreciates against the Canadian dollar. The actual impact of exchange rate changes is estimated by combining the main features of the markup specification and the effect of intermediate cost changes. In addition to the explicit recognition of the effects of markups and cost changes, the study includes the feedback effect of the partial adjustment mechanism in three-stage least squares to compare the findings of the vector autoregressions and to develop more reasonable implicit explanations. Moreover, the vector autoregressive technique particularly provides an adapted exploration of the dynamic inter-relationships among the exchange rate changes and trade prices as well as quantities to identify the role of exchange rate changes in output and price determination by analyzing variance decompositions and impulse responses. The results from these two different econometric methodologies present several similar meaningful findings. The findings suggest that the exporters and importers of the United States do not meet a very competitive situation with Canadian traders. By contrast, the findings indicate that the export and import industries of the United States encounter severer competition when they trade to and from Japan. In addition to measuring competitiveness, the results also illustrate that the responses of exchange rate changes between the short-run and the long-run are relatively small in the trade prices of the United States and Japan, suggesting that most price adjustments will be completed immediately, while the adjustments of import prices occur slower than has been expected between the United States and Canada. Furthermore, according to the impact elasticities of trade volume equations, the results suggest that a trade negotiation or a managed exchange rate policy might be an effective way to improve the trade deficits between the United States and Canada, while these policies might cause the trade deficits between the United States and Japan to deteriorate after dollar depreciation.
Download or read book An Analysis of the Effects of Exchange Fluctuations on Employment Output and Productivity in Canada written by Sima Ghasemi and published by . This book was released on 2013 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: Since the adoption of the North American Free Trade Agreement (NAFTA), the Canadian dollar has come to be regarded as a petro-currency. Consequently, rising prices of oil and gas (as well as other natural resources) would increase capital inflows that would lead to a higher exchange rate and contribute to the decimation of the export-oriented Canadian manufacturing sector by making Canadian products less competitive internationally. Some have argued that the Canadian economy has started to show symptoms related to the Dutch Disease. One important symptom is the slow rate of productivity growth, which consequently leads to the theory that Canada's productivity performance depends significantly on the foreign exchange value of the domestic currency. This dissertation attempts to address these issues and seeks to solve the question of whether the Canadian economy is suffering from the Dutch Disease, as well as whether or not movements of the Canadian dollar are responsible for the low Canadian productivity growth since the 1990s.
Download or read book Products and Provinces written by Mr.Itai Agur and published by International Monetary Fund. This book was released on 2016-09-26 with total page 33 pages. Available in PDF, EPUB and Kindle. Book excerpt: The waning of the commodity boom places renewed emphasis on manufacturing as an engine for Canadian growth. However, Canadian manufacturing exports have been relatively stagnant since 2000. While the exchange rate depreciation over the past two years has energized export growth, the response has not been as strong as would have been expected given the size of the depreciation. More fundamental issues appear to be impeding the growth of the Canadian manufacturing sector. This study analyzes the structural factors behind export competitiveness by using unique Canadian data on exports, which are disaggregated both by province and by product. Matching exports to similarly disaggregated data on R&D, the capital stock and other supply-side variables, we find that these variables significantly affect export growth, beyond the impact of the exchange rate. In particular, investment in R&D, capital infrastructure and vocational training improves innovation and production capacity. These results are robust to a factor-augmented approach that controls for multicollinearity.
Download or read book Structural Change and Industrial Policy written by Roy A. Matthews and published by . This book was released on 1985 with total page 86 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Death of Canadian Manufacturing Plants written by John Russel Baldwin and published by . This book was released on 2010 with total page 47 pages. Available in PDF, EPUB and Kindle. Book excerpt: We examine the simultaneous effects of real-exchange-rate movements and of tariff reductions on plant death in Canadian manufacturing industries between 1979 and 1996. We find that both currency appreciation and tariff cuts increase the probability of plant death, but that tariff reductions have a much greater effect. Consistent with the implications of recent international trade models involving heterogeneous firms, we further find that the effect of exchange-rate movements and tariff cuts on exit are heterogeneous across plants--particularly pronounced among least efficient plants. Our results reveal multi-dimensional heterogeneity that current models featuring one-dimensional heterogeneity (efficiency differences among plants) cannot fully explain. There are significant and substantial differences between exporters and nonexporters, and between domestic- and foreign- controlled plants. Exporters and foreign-owned plants have much lower failure rates; however, their survival is more sensitive to changes in tariffs and real exchange rates, whether differences in their efficiency levels are controlled or not.
Download or read book The Canadian Manufacturing Sector written by John Russel Baldwin and published by . This book was released on 2009 with total page 57 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Exchange Rate Fluctuations and Labour Market Adjustments in Canadian Manufacturing Industries written by Gabriel Bruneau and published by . This book was released on 2015 with total page 46 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Labour Market Adjustments to Exchange Rate Fluctuations written by Danny Leung and published by . This book was released on 2005 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Death of Canadian Manufacturing Plants written by John Russel Baldwin and published by . This book was released on 2010 with total page 49 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper is one of the few that have studied the impact of exchange rate movements on plant survival. The paper provides empirical evidence on the simultaneous effect of tariff reduction and exchange rate movements on plant exit using Canadian plant-level panel data covering a period from 1979 to 1996, during which Canada experienced large exchange rate fluctuations and tariff reductions. The paper also looks at the problems associated with interactions in probit regression and offers correct interpretation of the effects of interaction terms between tariffs/exchange rates and producer characteristics. Section 1 reviews a set of hypotheses regarding plant exit using a variety of models from the industrial-organization and international-trade literature. Section 2 introduces the data sources used herein and provides summary statistics. Section 3 outlines empirical specifications, and presents empirical results. Section 4 concludes.--Includes text from document.
Download or read book Do Exchange Rates Affect the Capital labour Ration Panel Evidence from Canadian Manufacturing Industries written by Bank of Canada and published by . This book was released on 2005 with total page 53 pages. Available in PDF, EPUB and Kindle. Book excerpt: As a small open economy with increasing United States trade exposure and large exchange rate fluctuations over the past two decades, Canada provides an excellent environment in which to address the extent to which the exchange rate affects productivity. This paper adopts a dynamic framework with multiple quasi-fixed factors to examine the effects of exchange rates on the capital-labour ratio for the manufacturing sector in Canada. It develops a model that assumes that total factor productivity is exogenous and focusses on the relationship between labour productivity and the capital (machinery & equipment) to labour ratio. An empirical analysis is conducted on annual data (1981-97) from the Canadian Productivity Accounts for 21 manufacturing industries. The effect of the exchange rate on the capital-labour ratio is estimated through the user cost channel. A sensitivity analysis is also presented that includes testing whether the capital-labour ratio is more sensitive to changes in the price of labour than the user cost.
Download or read book Canadian Manufactured Exports written by Donald James Daly and published by IRPP. This book was released on 1986 with total page 212 pages. Available in PDF, EPUB and Kindle. Book excerpt: This study provides important empirical background to the continuing debate on Canadian industrial policy and trade. The analysis is based on primary data derived from a unique survey of individual firms, both Canadian and foreign-owned, conducted early in the 1981-1982 recession. The main purpose of the study is to assess whether recent changes in tariffs, exchange rates, wage rates, and other factors in Canada and the world economy suggest the need for any significant modification in the earlier analyses and conclusions. The study presents prior evidence on costs, specialization, and trade; assesses current costs and productivity, and presents new information on how increased exports and specialization would affect cost performance and international competitiveness; examines non-production costs and other non-cost influences on specialization and export performance; and suggests strategies for the private sector to consider in order to survive in the changing trade environment of the 1980s.
