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Firm size and Economic Performance

Danny Leung and Ryan Macdonald

Statistics Canada

This presentation focuses on the importance of firm size for understanding the structure and evolution of the Canadian economy.  First, new estimates of GDP by firm size for the business sector and for S-level industries will be examined. These data extend from 2002 to 2013 and include estimates for Canada, and for Quebec, Ontario, Alberta and British Columbia.  Then, estimates of employment turn-over, entry and exit rates by firm size are examined. Of particular interest are rapidly growing small firms and the transition of medium firms to larger or smaller size classes.  Finally, the importance of large firms, both in terms of their contribution to the economy, and their role as a source of economic shocks are examined.