The Canadian Manufacturing Sector, 2002-2008: Why Is It Called Dutch Disease?

High-profile complaints about so-called Dutch disease have led many to question if industry in some parts of the country is suffering due to the success of the natural resources sector in others. This paper considers changes in manufacturing employment from 2002- 2008, a time of increased commodity prices. At first glance, the figures appear alarming — Canada shed 328,000 manufacturing jobs during that period — but the decline wasn’t entirely commodity-driven. Canada is the sole G-7 country in which manufacturing is on par with what it was 40 years ago; manufacturing employment rose in the dec... Mehr ...