Evaluation of Productivity in the Canadian Copyright-based Industries

Abstract

Copyright industries are an important part of the economy, accounting for five to over ten percent of the GDP of certain economies. Studies suggest that the copyright sector has grown faster than the entire economy in most countries. However, the author’s earlier study found that Canada’s core copyright-based industries accounted for a smaller share of the economy when compared to those industries in the United States and Europe. This paper examines the factors behind the slower growth of copyright-based industries in Canada. In particular, the paper estimates the growth of the main economic indicators of the core copyright-based industries of Canada and compares them with those of the rest of the economy and with those of the copyright-based industries in the United States. The study also explores the impacts of factors such as exports, foreign direct investment, and information and communication technologies on the productivity of the copyright-based industries. Generalized Method of Moments (GMM) and System GMM methods are used to estimate the models. The study suggests that there is a significant gap between Canada and the United States in terms of value added, employment, investment, and labor productivity growth of core copyright-based industries.

Keywords

• copyright industries
• productivity
• economic growth
• canada