POLS 3125 Lecture Notes - Lecture 31: Non-Interventionism, Comparative Advantage, Canada Development Investment Corporation
1 Feb 2018
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New industries: what happens when protection lifted? low r&d may be a problem of demand. Canadian state strategies for industrial development: non-intervention, positive adjustment. History of state intervention in industrial development: manufacturing: significant from the beginning. 1890-1929: increased in size: workforce reduced 1/3, value added increased 10x, partly due to comparative advantage in resources and transportation protective measures, also due to state policies (tariffs) Increasing demand, but filled through imports vs. domestic goods. Third world pressures on standard-technology manufacturing sectors (footwar, textiles) Slowdown in productivity vs. wage growth: regional economic disparities, high level of foreign (us) ownership. Major tariff cuts: 1987 and cufta/nafta: measure to control foreign investment. 1971: canada development corporation (cda: renamed canada development investment corporation (cdic) 1975: petro-canada: crown corporations (cid:858)new economy(cid:859, greater importance of forms of production based on research-intensive areas, central: r&d (research and development, 3 basic areas of research production information technology (it) Low level of r&d spending (1. 7-1. 8% or gdp)
