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Productivity and Research and Development in Two Canadian Forest Product Industries

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This paper examines the role of research and development (R&D) in two important sectors of the Canadian economy, its pulp and paper and wood industries. A cost of adjustment model with two quasifixed inputs (capital and R&D) and three variable inputs (labor, materials, and wood) is used to estimate the technology, the rate of return on R&D, and its contribution to total factor productivity growth in these two industries. The sample is from 1963 to 1988. R&D is found to earn a net real after-tax annual rate of return of 1.6% in the pulp and paper industry and of 7.8% in the wood industry. The contribution of R&D to total factor productivity growth is minimal. Scale remains the main determinant of total factor productivity growth. For. Sci. 42(4):487-497.

Keywords: Total factor productivity growth; costs of adjustment; scale economies

Document Type: Journal Article

Affiliations: M.A. Student at the Université du Québec à Montréal

Publication date: November 1, 1996

More about this publication?
  • Forest Science is a peer-reviewed journal publishing fundamental and applied research that explores all aspects of natural and social sciences as they apply to the function and management of the forested ecosystems of the world. Topics include silviculture, forest management, biometrics, economics, entomology & pathology, fire & fuels management, forest ecology, genetics & tree improvement, geospatial technologies, harvesting & utilization, landscape ecology, operations research, forest policy, physiology, recreation, social sciences, soils & hydrology, and wildlife management.
    Forest Science is published bimonthly in February, April, June, August, October, and December.

    2015 Impact Factor: 1.702
    Ranking: 16 of 66 in forestry

    Also published by SAF:
    Journal of Forestry
    Other SAF Publications
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