International topics

• September 15, 2008

  Offshoring and Its Effects on the Labour Market and Productivity: A Survey of Recent Literature

  Bank of Canada Review - Autumn 2008 James Rossiter, Yi Zheng, Calista Cheung

  Offshoring has become an increasingly prominent aspect of the globalization process. Evidence over the past two decades suggests that offshoring has not exerted a noticeable impact on overall employment and earnings growth in advanced economies, but it has likely contributed to shifting the demand for labour towards higher-skilled jobs. There appear to be some positive effects of offshoring on productivity, but such effects differ by country.

  Content Type(s): Publications, Bank of Canada Review articles Topic(s): International topics, Labour markets, Productivity
• September 15, 2008

  Adjusting to the Commodity-Price Boom: The Experiences of Four Industrialized Countries

  Bank of Canada Review - Autumn 2008 Michael Francis

  Between 2002 and 2008, global commodity prices rose to unprecedented levels. This article examines the process of adjustment to the commodity boom in four industrialized, commodity-exporting countries (Australia, Canada, New Zealand, and Norway). The article focuses on both the direct adjustment within the commodity-producing sectors (via increased employment and capital spending) and the indirect adjustment in the macro economy. The analysis finds that the indirect adjustment process, which was triggered by the increase in incomes that the commodity-price boom generated, has been the most important part of the adjustment in all four economies. Through this channel, aggregate demand rose, exchange rates appreciated, and adjustment was facilitated in other sectors, such as manufacturing and construction.

  Content Type(s): Publications, Bank of Canada Review articles Topic(s): International topics, Recent economic and financial developments