Reducing barriers to foreign direct investment in telecommunications and broadcasting, and in air transportation would boost productivity and reduce prices. This would disproportionately benefit lower- and middle-income households and make growth more inclusive. Sharpening inter-provincial competition and reducing barriers to internal trade would have similar effects.
- Lower barriers to competition in network sectors.
- Reduce barriers to internal trade by broadening sectoral coverage of the Agreement on Internal Trade, reconciling regulatory differences and strengthening enforcement.
- Foster inter-provincial energy connections.
- Review small business programmes to refocus them on clear market failures.
- Change the tax mix towards environmental taxes and value-added tax.
Source: OECD May 2017 Economic Outlook database
Someshwar Rao (2011), "Cracking Canada's productivity conundrum", IRPP Study.
Productivity - enhancing institutions
Canada does not have a main productivity-enhancing institution. The Centre for the Study of Living Standards conducts research on productivity as do Statistics Canada and Innovation, Science and Economic Development Canada.