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Canada: Life beyond the Looking Glass

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  • John F. Helliwell

Abstract

Canada's population, a tenth that of the United States, is perched close to the U.S. northern border, tightly but asymmetrically tied to U.S. information networks. However, trade, capital and population mobility remains an order of magnitude tighter among provinces than between provinces and states. This separating effect of the national border is not primarily due to barriers, but to networks of contacts, trust and institutions that make it efficient to concentrate economic activity within national borders. This separation combines with quite different histories to explain why Canadian economic, social, education and health care policies remain distinct from U.S. policies, often closer to those in Northern Europe.

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File URL: http://www.aeaweb.org/articles.php?doi=10.1257/jep.15.1.107
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Bibliographic Info

Article provided by American Economic Association in its journal Journal of Economic Perspectives.

Volume (Year): 15 (2001)
Issue (Month): 1 (Winter)
Pages: 107-124

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Handle: RePEc:aea:jecper:v:15:y:2001:i:1:p:107-124

Note: DOI: 10.1257/jep.15.1.107
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  1. Lemieux, T., 1993. "Unions and Wages Inequality in Canada and the United States," Cahiers de recherche, Centre interuniversitaire de recherche en économie quantitative, CIREQ 9302, Centre interuniversitaire de recherche en économie quantitative, CIREQ.
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  13. John F. Helliwell, 1996. "Do Borders Matter for Social Capital? Economic Growth and Civic Culture in U.S. States and Canadian Provinces," NBER Working Papers 5863, National Bureau of Economic Research, Inc.
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Cited by:
  1. Steven Globerman, 2004. "Regional Economic Integration: The Canada-U.S. Experience," International Finance, EconWPA 0404007, EconWPA.
  2. Marc Fox, 2003. "Medical student indebtedness and the propensity to enter academic medicine," Health Economics, John Wiley & Sons, Ltd., vol. 12(2), pages 101-112.
  3. Morley Gunderson, 2001. "North American Economic Integration and Globalization," The State of Economics in Canada: Festschrift in Honour of David Slater, Centre for the Study of Living Standards, in: Patrick Grady & Andrew Sharpe (ed.), The State of Economics in Canada: Festschrift in Honour of David Slater, pages 355-377 Centre for the Study of Living Standards.

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