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Manufacturing Productivity and City Size in Canada, 1975 and 1985: Does Population Matter?

Department of Economics, Brock University, St Catharines, Ontario, Canada L2S 3A1

This paper analyses the relationship between manufacturing productivity and city size, based on Canadian data for 1975 and 1985. The results differ in some respects from those of US studies; in particular, in Canada city size appears to have a weaker impact on manufacturing productivity, and an impact which is diminishing over time. These findings may be a consequence of several differences in the characteristics of Canadian and US firms, as well as differences between the two urban systems; urbanisation economies in Canada may also have been weakened by regional development policies. There are, at the same time, some striking similarities in the industries which show positive urbanisation economies in the US and Canada. There is also a tendency in Canada for both industries with smaller firms and industries with higher rates of domestic ownership to exhibit greater urbanisation economies.

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