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IPS173 Alexandre Fortier-Labonté et al.
owned enterprises with controlled foreign affiliates. The indicator was
developed in collaboration with Statistics Canada’s International Accounts and
Trade Division.
Data collected by the Canada Revenue Agency (CRA) also provide details
about subsidiaries of Canadian enterprises abroad.

3. Result
At the end of 2016 (see Chart 1), 99.2% of enterprises in Canada were
domestic. Of these, 0.8% were part of an enterprise group, while 98.5% were
Canadian non-group enterprises. Only 0.8% of all enterprises operating in
Canada were MNEs. Half of MNEs were Canadian majority-owned, with foreign
affiliates (MOFAs) and half were foreign majority- owned, with Canadian
affiliates (FMOCAs).
Although less than 1% of all enterprises were MNEs, they held 67% of all
assets in the Canadian economy. MOFAs owned more assets than FMOCAs,
with 49% of the total.

Note: Numbers might not add up to 100% due to rounding.
Source: Statistics Canada, author’s calculations based on data from the Annual Financial and Taxation Statistics (AFTS).

Charts 2 and 3 show the distribution of assets for MNEs and domestic
enterprises across industries included in the AFTS for 2016. Most MNE’s assets
in non-financial industries (Chart 2) were held in manufacturing, distributive
trades and extraction, while a higher share of domestic enterprise’s assets were
held in real estate and construction. Overall, domestic enterprises owned
83.6% of all assets in construction and 70.7% in real estate. The local
knowledge required to operate in both industries could account for the high
share of assets held by domestic enterprises.

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