Friday, September 22, 2023
No Result
View All Result
  • Media
Support Us
Macdonald-Laurier Institute
  • Home
  • About
    • Who We Are
    • Who Makes MLI Work
    • Tenth Anniversary
  • Experts
    • Experts Directory
    • In Memoriam
  • Issues
    • Domestic Policy
      • Agriculture and Agri-Food
      • Canada’s Political Tradition
      • Economic policy
      • Health Care
      • Innovation
      • Justice
      • Social issues
      • Telecoms
    • Energy Policy
      • Energy
      • Environment
    • Foreign Policy
      • Foreign Affairs
      • National Defence
      • National Security
    • Indigenous Affairs
  • Projects
    • The Great Energy Crisis
    • Centre for Advancing Canada’s Interests Abroad
    • Dragon at the Door
    • Canada and the Indo-Pacific Initiative
    • The Transatlantic Program
    • DisInfoWatch.org
    • Competition Policy in Canada
    • Speak for Ourselves
    • Justice Report Card
    • COVID Misery Index
      • Provincial COVID Misery Index
      • Beyond Lockdown
      • COVID and after: A mandate for recovery
    • Indigenous Prosperity at a Crossroads
      • Aboriginal Canada and Natural Resources
    • Past Projects
      • The Eavesdropping Dragon: Huawei
      • Talkin’ in the Free World with Mariam Memarsadeghi
      • An Intellectual Property Strategy for Canada
      • Munk Senior Fellows
      • A Mandate for Canada
      • Confederation Series
      • Fiscal Reform
      • The Canadian Century project
      • Fixing Canadian health care
      • Internal trade
      • From a mandate for change
      • Size of government in Canada
      • Straight Talk
      • Labour Market Report
      • Leading Economic Indicator
  • Events
    • Upcoming Events
    • Past Events
      • MLI Dinners
      • Great Canadian Debates
  • Latest News
  • Libraries
    • Inside Policy
    • Papers
    • Commentary
    • Columns
    • Books
    • Video
  • Home
  • About
    • Who We Are
    • Who Makes MLI Work
    • Tenth Anniversary
  • Experts
    • Experts Directory
    • In Memoriam
  • Issues
    • Domestic Policy
      • Agriculture and Agri-Food
      • Canada’s Political Tradition
      • Economic policy
      • Health Care
      • Innovation
      • Justice
      • Social issues
      • Telecoms
    • Energy Policy
      • Energy
      • Environment
    • Foreign Policy
      • Foreign Affairs
      • National Defence
      • National Security
    • Indigenous Affairs
  • Projects
    • The Great Energy Crisis
    • Centre for Advancing Canada’s Interests Abroad
    • Dragon at the Door
    • Canada and the Indo-Pacific Initiative
    • The Transatlantic Program
    • DisInfoWatch.org
    • Competition Policy in Canada
    • Speak for Ourselves
    • Justice Report Card
    • COVID Misery Index
      • Provincial COVID Misery Index
      • Beyond Lockdown
      • COVID and after: A mandate for recovery
    • Indigenous Prosperity at a Crossroads
      • Aboriginal Canada and Natural Resources
    • Past Projects
      • The Eavesdropping Dragon: Huawei
      • Talkin’ in the Free World with Mariam Memarsadeghi
      • An Intellectual Property Strategy for Canada
      • Munk Senior Fellows
      • A Mandate for Canada
      • Confederation Series
      • Fiscal Reform
      • The Canadian Century project
      • Fixing Canadian health care
      • Internal trade
      • From a mandate for change
      • Size of government in Canada
      • Straight Talk
      • Labour Market Report
      • Leading Economic Indicator
  • Events
    • Upcoming Events
    • Past Events
      • MLI Dinners
      • Great Canadian Debates
  • Latest News
  • Libraries
    • Inside Policy
    • Papers
    • Commentary
    • Columns
    • Books
    • Video
No Result
View All Result
Macdonald-Laurier Institute

Oil sands don’t hurt manufacturing, they are manufacturing: New study by Philip Cross

September 28, 2017
in Economy Policy - papers, Energy - papers, Latest News, Papers, Philip Cross, Releases
Reading Time: 2 mins read
A A

Cross outlines why the oil sands should be classified as part of Canadian manufacturing and how that reveals a strikingly different picture of the Canadian economy

OTTAWA, Sept. 28, 2017 – Critics of the oil sands argue that Canada has been the victim of the so-called “Dutch Disease,” where a booming resource sector hampers manufacturing. In this narrative, growth in the oil sands has a negative impact on Canada’s manufacturing sector. Yet such a narrative ignores how technological change is blurring the delineation between industries.

The oil sands do not follow the “rip and ship” model of extracting that is commonly associated with natural resources and mining. Instead, it involves processing raw oil sand ore into bitumen, and some bitumen is upgraded to produce both intermediary and final products.

Munk Senior Fellow Philip Cross, a respected thought leader on fiscal and economy policy, provides an in-depth examination of why we should treat the oil sands as manufacturing rather than mining in a new paper for the Macdonald-Laurier Institute.

“Classifying the oil sands as manufacturing changes much of Canada’s recent economic history,” writes Cross.

To read the full paper, titled “Producing Black Gold: Understanding the Oil Sands as Part of Manufacturing in Canada,” click here.

Classification isn’t just an issue of inter­est to accountants and statisticians. Nor is it just a word game. It funda­mentally affects how analysts understand and frame how the economy functions and how it is evolv­ing.

By treating oil sands as manufacturing, the declining trend in mining would be further magnified, shrinking in terms of GDP from over $100 billion before the recession to just $98.9 billion in 2013. It would also make manufacturing more than twice as important as mining, growing from $207 bil­lion before the recession to a new high of $219 billion in 2013.

In such a narrative, the oil sands would not be a drag on Canada’s manufacturing economy, as put forward in the a simplistic (and false) narrative of the “Dutch Disease.” Instead, Canada’s manufacturing sector would actually be expanding and thriving. Indeed, the oil sands would symbolize the successful tran­sition of Canada’s manufacturing sector from traditional industries, such as autos and clothing, and furniture, to those based on natural resources and cap­ital goods.

As Cross concludes, these industries “have proved they can survive a brutal global recession and thrive in an environment where the Canadian and US dollar are at par.”

***

Philip Cross is a Munk Senior Fellow with the Macdonald-Laurier Institute. He previously served as the Chief Economic Analyst for Statistics Canada, part of a 36-year career with the agency.

The Macdonald-Laurier Institute is the only non-partisan, independent national public policy think tank in Ottawa focusing on the full range of issues that fall under the jurisdiction of the federal government.

For more information, please contact David Watson, managing editor and director of communications, at 613-482-8327 x103 or email at david.watson@macdonaldlaurier.ca.

Share this:
Tags: manufacturingoil sandsPhilip Cross
Previous Post

The West should support Kurdish desire for independence: Shuvaloy Majumdar in the National Post

Next Post

Consensus on revised NAFTA package still up in the air: Lawrence Herman for Inside Policy

Related Posts

Romanian Energy Minister, Sebastian Burduja, talks energy security with Jonathan Berkshire Miller
Video

Romanian Energy Minister, Sebastian Burduja, talks energy security with Jonathan Berkshire Miller

September 21, 2023
Canada-Japan cooperation to counter China’s disinformation campaigns: Charles Burton for Inside Policy
Columns

It’s time for Canada to implement a foreign policy reset: Stephen Nagy in the Japan Times

September 21, 2023
Covid-19, the test bioethics failed: Tom Koch for Inside Policy
Inside Policy

Covid-19, the test bioethics failed: Tom Koch for Inside Policy

September 21, 2023
Next Post
Macdonald-Laurier Institute

Consensus on revised NAFTA package still up in the air: Lawrence Herman for Inside Policy

Newsletter Signup

Follow us on

Macdonald-Laurier Institute

323 Chapel Street, Suite #300
Ottawa, Ontario, K1N 7Z2 Canada

613.482.8327

info@macdonaldlaurier.ca
MLI directory

Support Us

Support the Macdonald-Laurier Institute to help ensure that Canada is one of the best governed countries in the world. Click below to learn more or become a sponsor.

Support Us

  • Inside Policy Magazine
  • Annual Reports
  • Jobs
  • Privacy Policy

© 2021 Macdonald-Laurier Institute. All Rights reserved.

No Result
View All Result
  • Home
  • About
    • Who We Are
    • Who Makes MLI Work
    • Tenth Anniversary
  • Experts
    • Experts Directory
    • In Memoriam
  • Issues
    • Domestic Policy
      • Agriculture and Agri-Food
      • Canada’s Political Tradition
      • Economic policy
      • Health Care
      • Innovation
      • Justice
      • Social issues
      • Telecoms
    • Energy Policy
      • Energy
      • Environment
    • Foreign Policy
      • Foreign Affairs
      • National Defence
      • National Security
    • Indigenous Affairs
  • Projects
    • The Great Energy Crisis
    • Centre for Advancing Canada’s Interests Abroad
    • Dragon at the Door
    • Canada and the Indo-Pacific Initiative
    • The Transatlantic Program
    • DisInfoWatch.org
    • Competition Policy in Canada
    • Speak for Ourselves
    • Justice Report Card
    • COVID Misery Index
      • Provincial COVID Misery Index
      • Beyond Lockdown
      • COVID and after: A mandate for recovery
    • Indigenous Prosperity at a Crossroads
      • Aboriginal Canada and Natural Resources
    • Past Projects
      • The Eavesdropping Dragon: Huawei
      • Talkin’ in the Free World with Mariam Memarsadeghi
      • An Intellectual Property Strategy for Canada
      • Munk Senior Fellows
      • A Mandate for Canada
      • Confederation Series
      • Fiscal Reform
      • The Canadian Century project
      • Fixing Canadian health care
      • Internal trade
      • From a mandate for change
      • Size of government in Canada
      • Straight Talk
      • Labour Market Report
      • Leading Economic Indicator
  • Events
    • Upcoming Events
    • Past Events
      • MLI Dinners
      • Great Canadian Debates
  • Latest News
  • Libraries
    • Inside Policy
    • Papers
    • Commentary
    • Columns
    • Books
    • Video

© 2021 Macdonald-Laurier Institute. All Rights reserved.

IDEAS CHANGE THE WORLD!Have the latest Canadian thought leadership delivered straight to your inbox.
First Name
Last Name
Email address

No thanks, I’m not interested.