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Convergence Across Provincial Economies in Canada: Trends, Drivers, and Implications

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  • Evan Capeluck

Abstract

Canada has long been characterized by significant regional disparities. Such inequalities can create and exacerbate regional tensions and lead to demands for further redistribution of wealth. The objective of this study is to report on the current state of provincial differences in twenty-five economic variables related to income, productivity, the labour market, well-being and fiscal capacity, and to analyze trends toward or away from convergence for these economic variables. This report also examines the factors influencing these trends and discusses the implications for the federation.

Suggested Citation

  • Evan Capeluck, 2014. "Convergence Across Provincial Economies in Canada: Trends, Drivers, and Implications," CSLS Research Reports 2014-03, Centre for the Study of Living Standards.
    • Handle: RePEc:sls:resrep:1403
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    File URL: http://www.csls.ca/reports/csls2014-03.pdf
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    References listed on IDEAS

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    1. John F. Helliwell, 1996. "Convergence and Migration among Provinces," Canadian Journal of Economics, Canadian Economics Association, vol. 29(s1), pages 324-330, April.
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    6. Mahamat Hamit-Haggar, 2013. "A note on convergence across Canadian provinces: new insights from the club clustering algorithm," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 50(2), pages 591-601, April.
    7. Elspeth Hazell & Kar-Fai Gee & Andrew Sharpe, 2012. "The Human Development Index in Canada: Estimates for the Canadian Provincesand Territories, 2000-2011," CSLS Research Reports 2012-02, Centre for the Study of Living Standards.
    8. Serge Coulombe & Kathleen M. Day, 1999. "Economic Growth and Regional Income Disparities in Canada and the Northern United States," Canadian Public Policy, University of Toronto Press, vol. 25(2), pages 155-178, June.
    9. Gabriel Rodríguez, 2006. "The role of the interprovincial transfers in the ß: Further empirical evidence for Canada," Journal of Economic Studies, Emerald Group Publishing, vol. 33(1), pages 12-29, January.
    10. Serge Coulombe & Frank C. Lee, 1995. "Convergence across Canadian Provinces, 1961 to 1991," Canadian Journal of Economics, Canadian Economics Association, vol. 28(4a), pages 886-898, November.
    11. Alexander Bilson Darku, 2011. "The impact of trade liberalization and the fiscal equalization transfer policy on provincial income disparities in Canada: an application of GMM estimation," Applied Economics, Taylor & Francis Journals, vol. 43(13), pages 1679-1689.
    12. Mukesh Ralhan & Ajit Dayanandan, 2005. "Convergence of Income Among Provinces in Canada – An Application of GMM Estimation," Econometrics Working Papers 0502, Department of Economics, University of Victoria.
    13. Lars Osberg & Andrew Sharpe, 2011. "Moving from a GDP-Based to a Well-Being Based Metric of Economic Performance and Social Progress: Results from the Index of Economic Well-Being for OECD Countries, 1980-2009," CSLS Research Reports 2011-12, Centre for the Study of Living Standards.
    14. Lars Osberg & Andrew Sharpe, 2010. "The Index of Economic Well-Being," Challenge, Taylor & Francis Journals, vol. 53(4), pages 25-42.
    15. Tsang, Eric W. K., 2014. "Old and New," Management and Organization Review, Cambridge University Press, vol. 10(03), pages 390-390, November.
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    Cited by:

    1. Matthew Calver & Roland Tusz & Erika Rodrigues, 2015. "Interprovincial Migration in Canada: Implications for Output and Productivity Growth, 1987-2014," CSLS Research Reports 2015-19, Centre for the Study of Living Standards.
    2. Don Drummond & Evan Capeluck & Matthew Calver, 2015. "The Key Challenge for Canadian Public Policy: Generating Inclusive and Sustainable Economic Growth," CSLS Research Reports 2015-11, Centre for the Study of Living Standards.
    3. Evan Capeluck, 2015. "Explanations of the Decline in Manufacturing Employment in Canada," CSLS Research Reports 2015-17, Centre for the Study of Living Standards.
    4. Vijay Kumar Vishwakarma, 2021. "Long-run drivers and integration in interprovincial Canadian housing price relations," International Journal of Housing Markets and Analysis, Emerald Group Publishing Limited, vol. 16(1), pages 22-40, November.

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    More about this item

    Keywords

    Regional Disparities; Inequality; Regional; Redistribution; Income; Productivity; Labour Markets; Well-Being; Fiscal Capacity; Convergence; Federation;
    All these keywords.

    JEL classification:

    • N92 - Economic History - - Regional and Urban History - - - U.S.; Canada: 1913-
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • J20 - Labor and Demographic Economics - - Demand and Supply of Labor - - - General
    • J10 - Labor and Demographic Economics - - Demographic Economics - - - General
    • J30 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - General
    • J40 - Labor and Demographic Economics - - Particular Labor Markets - - - General

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