Are Canadian Manufacturers Sourcing Internationally?
One concern that has been raised is that Canadiancompanies are not taking advantage of the rise of global value chains by sourcing internationally. It is argued that by sourcing some intermediate inputs internationally will allow Canadian manufacturersto become more competitive and expand other higher-valued activities in Canada. In support of the view that Canadian companies are not sourcing from abroad, in 2002, the most recent year for which comparable data is available, there were about 44,500 establishments that exported goods abroad, but nearly 64,200 that imported goods – almost 50% more. But, many of these importers are retailers or wholesalers that would be importing final goods, only 16,700 were manufacturers that would be much more likely to be importing intermediate inputs. This compares to roughly 20,800 manufacturing exporters. On the other hand, 37% of intermediate inputs used in Canada in 2003 were imported. That places Canada among the top third of OECD countries and t
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