WORLD TRADE
ORGANIZATIONWT/WGTI/W/98
9 March 2001
(01-1153)
Working Group on the Relationship
between Trade and InvestmentOriginal:  English
COMMUNICATION FROM CANADA
The following communication, dated 7 March 2001, has been received from the Permanent
Mission of Canada.
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Industry Canada Research Program on Foreign Direct Investment
1. Through its Microeconomics Research Program, Industry Canada has been at the forefront of
efforts to promote an understanding of the nature and effects of foreign direct investment including
both that of foreign firms in Canada and that of Canadian firms in other countries.
2. The results of these research undertakings are documented in several volumes in the Industry
Canada Research Series, and a number of Indus try Canada Working, Discussion and Occasional
Papers.
3. A listing of these various papers is appended.  All of the papers can be accessed electronically
through the Industry Canada Strategis web site http://strategis.ic.gc.ca .
4. While this research program has been undertaken in the context of Canada’s economic
experiences, the results of the work are instructive mo re generally with reference to the analytical and
educative work of the Working Group on the Interaction between Trade and Investment.
5. The results of this Research Program are br ought to the attention of Members without
prejudice to any future policy position which Canada may take with respect to the WTO Investment
Agenda.WT/WGTI/W/98
Page 2
Industry Canada Micro-Economic Policy Analysis Branch
Research Volumes
Vol. I - Foreign Investment, Technology and Economic Growth (General Editor: D. McFetridge),
University of Calgary Press, 1991
Vol. II - Corporate Globalization Through Mergers and Acquisitions (General Editor: L. Waverman),
University of Calgary Press, 1991
Vol. III - Mu ltinationals in North America (General Editor: L. Eden), University of Calgary Press,
1994
Vol. IV - Canadian-Based Multinationals (General Editor: S. Globerman), University of Calgary
Press, 1994
Vol. V - Corporate Decision-Making in Canada (G eneral Editors: Ronald J. Daniels & Randall
Morck), University of Calgary Press, 1995
Vol. VI - The Implications of Knowledge-Ba sed Growth for Micro-Economic Policies (General
Editor: Peter Howitt), University of Calgary Press, 1996
Vol. VII - The Asia Pacific Region in the Global Economy: A Canadian Perspective (General Editor:
Richard G. Harris), University of Calgary Press, 1997
Vol. VIII - Financing Growth in Canada (General Editor: Paul Halpern), University of Calgary Press,
1997
Vol. IX - Competition Policy and Intellectual Property Rights in the Knowledge-Based Economy
(General Editors: Robert D. Anderson and Nancy T. Gallini), University of Calgary Press, 1998
Infrastructure and Competitiveness (General Editor s: Jack Mintz and Ross Preston), Industry Canada
and the John Deutsch Institute for the Study of Economic Policy, Queens University, 1993
Capital Budgeting in the Public Sector (General Editors: Jack Mintz and Ross Preston), Investment
Canada and the John Deutsch Institute for the Study of Economic Policy, Queens University, 1993
Getting the Green Light: Environmental Regulation a nd Investment in Canada (Jamie Benidickson, G.
Bruce Doern and Nancy Olewiler), Industry Ca nada and the C. D. Howe Institute, 1994
Working Papers
No. 1- Economic Integration in North America: Tr ends in Foreign Direct Investment and the Top
1,000 Firms by Industry Canada Micro-Economic Policy Analysis staff, including John Knubley,Marc Legault and Someshwar Rao, January 1994
No. 2 - Canadian-Based Multinationals: An Analysis of Activities and Performance,
prepared by Industry Canada Micro-Economic Policy Analysis staff, including Someshwar Rao, Marc
Legault and Ashfaq Ahmad, July 1994WT/WGTI/W/98
Page 3
No. 3 - International R&D Spillovers Between Industries in Canada and the United States, prepared
by Jeffrey I. Bernstein, Carleton University and the National Bureau of Economic Research, under
contract to Industry Canada, September 1994
No. 4 - The Economic Impact of Mergers and Acquisitions on Corporations, prepared by Gilles
Mcdougall, Micro-Economic Policy Analysis, Industry Canada, February 1995
No. 5 - Steppin' Out: An Analysis of Recent University Graduates into the Labour Market, prepared
by Ross Finnie, School of Public Administration, Carleton University and Statistics Canada, May
1995
No. 6 - Measuring the Compliance Cost of Tax Expenditures: The Case of Research and Development
Incentives by Sally Gunz, University of Waterloo, Alan Macnaughton, University of Waterloo, and
Karen Wensley, Ernst & Young, Toronto, January 1996
No. 7 - Governance Structure, Corporate Decision-Making and Firm Performance in North America
by P. Someshwar Rao and Clifton R. Lee-Sing , Micro-Economic Policy Analysis, Strategic
Investment Analysis, Industry Canada, March 1996
No. 8 - Foreign Direct Investment and APEC Econom ic Integration by Ashfaq Ahmad, P. Someshwar
Rao and Colleen Barnes, Micro-Economic Policy Analysis, Industry Canada, February 1996
No. 9 - World Mandate Strategies for Canadian Subsidiaries by Julian Birkinshaw, Institute of
International Business, Stockholm School of Economics, March 1996
No. 10 - R&D and Productivity Growth in Canadi an Communications Equipment and Manufacturing
by Jeffrey I. Bernstein, Carleton University and The National Bureau of Economic Research, June1996
No. 11- Long-Run Perspective on Canadian Region al Convergence by Serge Coulombe, Department
of Economics, University of Ottawa, and Frank C. Lee, Industry Canada, May 1996
No. 13 - The Development of Strategic Alliances in Canadian Industries: A Micro Analysis by Sunder
Magun, Applied International Economics, October 1996
No. 14 - Employment Performance in the Knowledge-Based Economy by Surendra Gera, Industry
Canada, and Philippe Massé, Human Resources Development Canada, December 1996
No. 15 - The Knowledge-Based Economy: Shifts in Industrial Output by Surendra Gera, Industry
Canada and Kurt Mang, Department of Finance, January 1997
No. 16 - Business Strategies of SMEs and Large Firms in Canada by Gilles McDougall and David
Swimmer, Micro-Economic Policy Analysis, Industry Canada, 1997
No. 17 - Impact of China's Trade and Foreign In vestment Reforms on the World Economy by Winnie
Lam, Micro-Economic Policy Analysis, Industry Canada, 1997
No. 18 - Regional Disparities in Canada: Characterization, Trends and Lessons for Economic Policy
by Serge Coulombe, Department of Ec onomics, University of Ottawa, 1997
No. 19 - Inter-Industry and U.S. R&D Spillovers, Canadian Industrial Production and Productivity
Growth by Jeffrey I. Bernstein, Carleton Universi ty and National Bureau of Economic Research, 1998WT/WGTI/W/98
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No. 20 - Information Technology and Labour Produc tivity Growth: An Empirical Analysis for
Canada and the United States by Surendra Gera, Wulong Gu and Frank C. Lee, Micro-Economic
Policy Analysis, Industry Canada, 1998
No. 21 - Capital-Embodied Technical Change and th e Productivity Growth Slowdown in Canada by
Surendra Gera, Wulong Gu and Frank C. Lee, Micro-Economic Policy Analysis, Industry Canada,
1998
No. 23 - Restructuring in Canadian Industries: A Micro Analysis by Sunder Magun, Applied
International Economics, 1998
No. 24 - Canadian Government Policies Toward Inward Foreign Direct Investment
by Steven Globerman, Simon Fraser University and Western Washington University, and Daniel
Shapiro, Simon Fraser University, 1998
No. 25 - A Structuralist Assessment of Technology Policies - Taking Schumpeter Seriously on Policy
by Richard G. Lipsey and Kenneth Carlaw, Simon Fraser University, under contract with Industry
Canada, 1998
No. 26 - Intrafirm Trade of Canadian-based Foreign Transnational Companies by Richard A.
Cameron, Industry Canada, 1998
No. 27 - Recent Jumps in Patenting Activities: Comparative Innovative Performance of Major
Industrial Countries, Patterns and Explanations by Mohammed Rafiquzzaman and Lori Whewell,
Industry Canada, 1998
No. 28 - Technology and the Demand for Skills: An Industry-Level Analysis by Surendra Gera and
Wulong Gu, Industry Canada, and Zhengxi Lin, Statistics Canada, 1999
No. 30 - Foreign Direct Investment and Productiv ity Growth: The Canadian Host-Country Experience
by Surendra Gera, Wulong Gu and Frank C. Lee, Industry Canada, 1999
No. 31 - Are Canadian-Controlled Manufacturing Firms Less Productive than their Foreign-
Controlled Counterparts? by Someshwar Rao and Jianmin Tang, Industry Canada, 2000
No. 32 - The Canada-U.S. Productivity Growth Para dox by Serge Coulombe, University of Ottawa,
2000
Occasional Papers
No. 1 Volume 1 - Formal and Informal Investme nt Barriers in the G-7 Countries: The Country
Chapters
No. 1 Volume 2 - Summary and Conclusions by Industry Canada Micro-Economic Policy Analysis
staff, May 1994
No. 2 - Business Development Initiatives of Multinational Subsidiaries in Canada
by Julian Birkinshaw, University of Western Ontario, under contract to Industry Canada, May 1995
No. 3 - The Role of R&D Consortia in Technology Development by Vinod Kumar, Research Centre
for Technology Management, Carleton University, and Sunder Magun, Centre for Trade Policy andWT/WGTI/W/98
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Law, University of Ottawa and Carleton Univer sity, under contract to Industry Canada, February
1995
No. 4 - Gender Tracking in University Programs by  Sid Gilbert, University of Guelph and Alan
Pomfret, King's College, University of Western Ontario, under contract to Industry Canada, March1995
No. 5 - Competitiveness: Concepts and Measures by Donald G. McFetridge, Department of
Economics, Carleton University, under contract to Industry Canada, April 1995
No. 6 - Institutional Aspects of R&D Incentives: The Scientific Research and Experimental
Development Tax Credit by G. Bruce Doern, Schoo l of Public Administration, Carleton University,
under contract to Industry Canada, April 1995
No. 7 - Competition Policy as a Dimension of Economic Policy: A Comparative Perspective prepared
by Robert D. Anderson and S. Dev Khosla, Industry Canada, May 1995
No. 8 - Mechanisms and Practices for the Assessment of the Social and Cultural Implications of
Science and Technology by Liora Salter, Professor Osgoode Hall Law School, under contract to
Industry Canada, July 1995
No. 9 - Science and Technology: Perspectives for Public Policy by Donald G. McFetridge, Professor
Carleton University, under contract to Industry Canada as part of the Science and Technology
Review, July 1995
No. 10 - Endogenous Innovation and Growth: Implicatio ns for Canada by Pierre Fortin and Elhanan
Helpman Université du Québec à Montréal and the Canadian Institute for Advanced Research, and
Tel Aviv University and the Canadian Institute for Advanced Research, respectively, under contract to
Industry Canada as part of the Science and Technology Review, August 1995
No. 11 - The University-Industry Relationship in Science and Technology by Jérôme Doutriaux and
Margaret Barker, University of Ottawa and Meg Ba rker Consulting under contract to Industry Canada
as part of the Science and Technology Review, August 1995
No. 12 - The Technology and the Economy: A Review of some Critical Relationships
by Michael Gibbons, University of Sussex, under contract to Industry Canada as part of the Science &
Technology Review, December 1995
No. 13 - Management Skills Development in Canada by Keith Newton, Industry Canada, December
1995
No. 14 - The Human Factor in Firms' Performance: Management Strategies for Productivity and
Competitiveness in the Knowledge-Based Economy by Keith Newton, Industry Canada, November1996
No. 15 - Payroll Taxation and Employment: A Lite rature Surveyby Joni Baran, Industry Canada,
December 1996
No. 16 - Sustainable Development: Concepts, Measur es, Market and Policy Failures at the Open
Economy, Industry and Firm Levels by Philippe Crabbé, Institute for Research on Environment and
Economy, University of Ottawa, 1997WT/WGTI/W/98
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No. 17 - Measuring Sustainable Development: A Review of Current Practice by Peter Hardi, Stephan
Barg, and Tony Hodge, International Institute for Sustainable Development, 1997
No. 18 - Reducing Regulatory Barriers to Trade: Lessons for Canada from the European Experience
by Ramesh Chaitoo and Michael Hart, Center for Trade Policy and Law, Carleton University, 1997
No. 19 - Analysis of International Trade Disput e Settlement Mechanisms and Implications for
Canada's Agreement on Internal Trade by E. Way ne Clendenning and Robert J. Clendenning, E.
Wayne Clendenning & Associates Inc., 1997
No. 20 - Aboriginal Businesses: Characteristics a nd Strategies for Growth by David Caldwell and
Pamela Hunt, Management Consulting Centre, I ndustry Canada, under contract with Aboriginal
Business Canada, 1998
No. 21 - University Research and the Commercia lization of Intellectual Property in Canada by
Wulong Gu and Lori Whewell, Industry Canada, 1999
No. 22 - A Regional Perspective on the Canada-U.S. Standard of Living Comparison
by Raynald Létourneau and Martine Lajoie, Industry Canada, February 2000
No. 23 - Linkages Between Technological Change  and Productivity Growth by Steven Globerman,
Western Washington University, May 2000
No. 24 - Investment and Productivity Growth: A Survey From the Neoclassical and New Growth
Perspectives by Kevin J. Stiroh, Federal Reserve Bank of New York, June 2000
Discussion Papers
No. 1- Multinationals as Agents of Change: Setting A New Canadian Policy on Foreign Direct
Investment by Lorraine Eden, Carleton University, November 1994
No. 2 - Technological Change and International Economic Institutions by Sylvia Ostry, Centre for
International Studies, University of Toronto, December 1995
No. 3 - Canadian Corporate Governance Policy Op tions by Ronald J. Daniels, Faculty of Law,
University of Toronto and Randall Morck, Faculty of Business, University of Alberta, March 1996
No. 4 - Foreign Direct Investment and Market Framework Policies: Reducing Frictions in APEC
Policies on Competition and Intellectual Property by Ronald Hirshhorn, October 1996
No. 5 - Industry Canada's Foreign Investment Research: Messages and Policy Implications by Ronald
Hirshhorn, October 1997
No. 6 - International Market Contestability and the New Issues at the World Trade Organization by
Edward M. Graham, Institute for International Economics, Washington (DC), February 1998
No. 7 - Implications of Foreign Ownership Rest rictions for the Canadian Economy - A Sectoral
Analysis by Steven Globerman, Western Washington University, April 1999
No. 8 - Determinants of Canadian Productivity Grow th: Issues and Prospects by Richard G. Harris,
Simon Fraser University and Canadian Inst itute for Advanced Research, December 1999WT/WGTI/W/98
Page 7
No. 9 - Is Canada Missing the "Technology Boat"? Evidence from Patent Data by Manuel
Trajtenberg, Tel-Aviv University, National Bureau  of Economic Research and Canadian Institute for
Advanced Research, January 2000
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