natane
Uploaded by
22 SLIDES
361 VUES
220LIKES

Analyzing Canadian Productivity: Key Factors and the Role of Managerial Skills

DESCRIPTION

This paper examines the productivity gap between Canada and the US, focusing on potential sources of total factor productivity (TFP) differences. Key areas explored include technology adoption, human capital, R&D incentives, and organizational capabilities. A thought experiment illustrates the effects of efficiency versus technology on TFP, with findings suggesting that managerial skills, formal education, and structural inefficiencies significantly impact productivity. The analysis reveals that 50% of Canadian tech managers hold S&E degrees versus 43% in the US, highlighting critical areas for improvement in managerial education.

1 / 22

Télécharger la présentation

Analyzing Canadian Productivity: Key Factors and the Role of Managerial Skills

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Management Matters February 2nd, 2009 Joint with Michelle Alexopoulos

  2. Canadian Productivity Lags the US Source: Rao, Tang, and Wang (2008); Industry Canada.

  3. Possible Sources of TFP Differences • Technology and Human Capital • Science and Engineering Capability • R&D incentives • Efficiencies • Distortionary policies • Industrial structure • Organizational Capability

  4. Is Intangible Channel Important? • Go over the Weil (2009) thought experiment: • TFP = efficiency x technology • At US TFP growth rate of 0.66%, even being a decade behind the US technology would mean a relative TFP of only 0.94, but we have 0.75 value • Thus, must be efficiency difference

  5. Could Managerial Skills be Important? • Differences in formal education of business leaders between Canada and US: • 50% of Canadian tech. company managers are S&E compared to the 43% in US • 30% have post-secondary degrees, compared to 50% • Proportion of top-100 Canadian firms with MBAs is 50% higher in the US

  6. Could Managerial Skills be Important?

  7. Could Managerial Skills be Important?

  8. Could Managerial Skills be Important?

  9. Managerial Skills Channel • Production Efficiencies • Work rules • Team structures • Morale • Coordination Efficiencies • Multi-plant problem • Information transmission

  10. Measurement Issues • Current Research (all case studies) • Specific management techniques (TQM, Quality Circles, BPR) and specific firm performance (ROA or ROE) • Possession of certain degrees and firm performance following US telecom. deregulation • Business and Economics do far better than science and engineering (in sense of "strategic ability") • Gap in Literature • Aggregate effects potentially quite different • General equilibrium feedbacks (diminishing returns, factor market connections, industrial structure) • Need an aggregate measure of "managerial skill"

  11. Source: Author’s calculations from Business Source Premier online database. Bibliometric Measures

  12. Bibliometric Measures • Problem: results sensitive to database choice

  13. Library of Congress Measure

  14. LOC Book Counts • Library of Congress Catalogue Records for Management-Related Items might be such a measure: • Largest book database • Stardardized LOC Classification System • Profit motive suggests publication dates close to moments of high interest in a subject (new technique innovation)

  15. Does LOC Do Well?

  16. The Data • 1929-2002 LOC Catalogue (manually download/manipulated ….. *sigh*) • Mainly HD, HF, T, and TS classes • TFP series calculated in standard Solow-residual fashion from BEA and Global Insight databases (split sole-proprietor income proportional to aggregate labour/capital split)

  17. Empirical Specification • Vector Auto-Regressions:

  18. Regression Results • 10% increase in new management titles associated with 0.6% increase in TFP • Perspective: roughly $80 billion in first year

  19. Variance Decompositions

  20. Results Summary • Endogeneity Problems? • None of the results hold for drama, music, history, fiction books (or any other category we attempted). • Suggests reverse causation less of a concern? • Omitted Variables? • Am I missing something?

More Related