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By A Smith (anonymous) | Posted December 25, 2011 at 16:20:00 in reply to Comment 72523
>> (Canada's) manufacturing industry is reliant on purchases of foreign equipment necessary to improve production?
Productivity from 2000-08 was 1.004%/year, basically flat. During this time period, the Canadian dollar went from $0.69US to over a dollar, only falling when people bought U.S. dollars during the financial crisis.
In contrast, from 1990-2000, when the Canadian dollar fell from $0.86US to $0.69 Canada's productivity averaged 1.88%/year.
It seems logical that a stronger dollar should help productivity, but the data does not show that to be the case, it actually shows the opposite.
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