Naveen Rai is an economist in the Regional Analysis Division in the Canadian Economics Analysis Department. His work focuses on the Business Outlook Survey and researching important issues for the Canadian economy including labour markets, foreign direct investment, productivity, housing, and credit conditions. He has completed his Masters in Applied Economics and Policy Analysis from the University of Regina.
This paper seeks to understand how outward foreign direct investment (FDI) affects the productivity of Canadian firms. We estimate the impact of outward greenfield investment on measures of firm-level productivity using FDI data from roughly 2,000 Canadian firms and more than 4,000 outward FDI projects over the 2003–14 period.
Shocks to a currency area can and often do have asymmetric impacts on its regions that, in the absence of perfect labour mobility, lead to gaps in relative labour market performance. Witness, for example, the effects of the 2008/09 recession and subsequent financial crisis in Europe on the dispersion of employment rates across the euro area – and to a lesser extent the United States.