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Competitiveness in the Sawmills and Wood Preservation Industry in the United States and Canada

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We examine relative prices, relative productivity levels, and competitiveness in the sawmills and wood preservation industry in the United States and Canada between 1958 and 2003 by using purchasing power parities and bilateral translog production function. Our results show that the competitiveness of the Canadian industry is facilitated by higher relative productivity levels and depreciation of the Canadian dollar relative to the US dollar on both inputs and outputs in earlier periods, and only due to depreciation of the Canadian dollar in later periods. The average annual rate of productivity growth was higher for the US industry. Although Canadian relative productivity levels were higher before 1994, the US industry's relative productivity level eventually surpassed the Canadian industry.
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Keywords: Relative prices; bilateral translog production function; gap in technology; relative productivity levels; technical change

Document Type: Research Article

Publication date: 2006-08-01

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