Title: Productivity Performance and the International Outsourcing of Services by Canadian Industry
Abstract: When low productivity growth in the services sector combines with rising shares of services in nominal GDP, productivity growth of the economy suffers. Given the national importance of productivity growth, this is a concern of business executives and policy makers alike. We hypothesize that firms try to improve productivity performance by outsourcing services to foreign providers. Support for this hypothesis is found for Canada, using partial correlation analysis on a longer time series than in previous studies and also pooled data for seven aggregate industries. The results suggest scope for domestic productivity enhancement from further liberalization of international trade in services.
Publication Year: 2012
Publication Date: 2012-11-01
Language: en
Type: article
Indexed In: ['crossref']
Access and Citation
Cited By Count: 2
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