Three Policies to Improve Productivity Growth in Canada

44

IV. Conclusion

This paper has made the case that productivity is our economic destiny and that
Canada’s dismal productivity performance, both from a historical and international
perspective, therefore represents our biggest economic challenge. It then put forward
three specific policies to improve Canada’s productivity performance: foster the diffusion
of best-practice technologies; remove the provincial sales tax on purchases of machinery
and equipment; and promote interprovincial movement of workers by improving labour
market information, removing professional barriers to labour mobility, and establishing a
tax credit for interprovincial job search. The short-term costs of these policies would be
greatly outweighed by the long-term benefits.

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