Canadian Forest Service Publications

Capital deepening and technological change. The Canadian Pulp and Paper Industry, 1940-60. 1971. Manning, G.H.; Thornburn, G. Canadian Journal of Forest Research 1(3): 159-168.

Year: 1971

Issued by: Pacific Forestry Centre

Catalog ID: 28389

Language: English

Availability: PDF (request by e-mail)

Available from the Journal's Web site.
DOI: 10.1139/x71-021

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The pulp and paper industry is generally considered the most technologically progressive of the forest industries. A study employing Solow's method indicated a rise in the index of technological change of 50% between 1940 and 1960. This compares with a 547% increase for the chemical industry. Derivation of the capital production function for the pulp and paper industries shows that all increases in productivity, 1940–1960, were due to change in technology. There is also some indication that optimal plant size has been reached.