Manufacturing in a Natural Resource Based Economy: Evidence from Canadian Plants

This study investigates the effects of an oil boom on firms’ performance using data from Canadian Annual Survey Manufactures. We exploit time variation booming natural resource sector activity in oil-producing area with location manufacturing plants. hypothesize that effect plants depends their spatial proximity, which allows us to create exogenous treatment variable. The outcome variables include plant-level wages, employment, sales, and exports. find incidence exporting varies greatly by productivity. More productive become more likely export relative less They can do so paying a higher wage, while employment grows than serve only domestic market. initial productivity plants’ ability provides important differentiation average effects. In particular, there is great variety sector, clear linkage industry not observed.