Multinationals run more productive plants, Statistics Canada finds

Canadian plants with an international orientation are just as competitive with foreign-owned plants
By Uyen Vu
|Canadian HR Reporter|Last Updated: 01/17/2006

Manufacturing plants in Canada that are foreign-owned not only tend to be more productive and innovative than plants owned domestically, they also contributed more than their share to Canada’s labour productivity growth in the past two decades, researchers say.

A paper by two Statistics Canada researchers, John Baldwin and Wulong Gu, found foreign-owned plants have higher pay, a higher share of non-production workers, greater use of advanced technology, higher levels of research and development and more innovation.

“There has long been a debate about the role of foreign enterprises in the Canadian economy, and the extent to which the Canadian economy is better off or worse off for them,” says Baldwin.