Skip to main content

Total Factor Productivity Growth in the Sawmill and Wood Preservation Industry in the United States and Canada: A Comparative Study

Buy Article:

$21.50 plus tax (Refund Policy)

By using the Törnqvist-Theil index approach, we analyze trends in total factor productivity (TFP) growth in the United States and Canadian sawmill and wood preservation industries (NAICS 3211) between 1958 and 2003. The results indicate that the TFP grew at an average annual compound rate of 1.11% due to higher growth in aggregate outputs by 1.42% and a smaller growth in aggregate inputs by 0.31% in the United States. In Canada, TFP grew at a smaller average annual compound rate of 0.61% as a result of growth in aggregate outputs and inputs by 3.57% and 2.94%, respectively. Although productivity growth for production worker input was similar in both countries, large gaps in productivity growth existed for nonproduction workers, material, capital, and energy inputs. The gap in TFP growth between the two countries appears to have widened since 1987, primarily due to the differences in capital stock growth. Volatility in lumber prices after 1991 might have also played a role, as the Canadian industry could not adequately respond to changing market situations in the face of uncertainty and trade barriers on softwood lumber exports to the United States.
No Reference information available - sign in for access.
No Citation information available - sign in for access.
No Supplementary Data.
No Data/Media
No Metrics

Keywords: Törnqvist-Theil index number; US–Canada Free Trade Agreement; US–Canada softwood lumber trade dispute; lumber price volatility; productivity convergence

Document Type: Research Article

Publication date: 2006-10-01

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.

    2016 Impact Factor: 1.782 (Rank 17/64 in forestry)

    Average time from submission to first decision: 62.5 days*
    June 1, 2016 to Feb. 28, 2017

    Also published by SAF:
    Journal of Forestry
    Other SAF Publications
  • Submit a Paper
  • Membership Information
  • Author Guidelines
  • Podcasts
  • Ingenta Connect is not responsible for the content or availability of external websites
  • Access Key
  • Free content
  • Partial Free content
  • New content
  • Open access content
  • Partial Open access content
  • Subscribed content
  • Partial Subscribed content
  • Free trial content
Cookie Policy
Cookie Policy
Ingenta Connect website makes use of cookies so as to keep track of data that you have filled in. I am Happy with this Find out more