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Economic Growth and Regional Income Disparities in Canada and the Northern United States

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  • Serge Coulombe
  • Kathleen M. Day

Abstract

This paper compares the evolution of regional disparaties in per capita incomes in Canada and the 12 American states along Canada's southern border. The phenomenon of capital accumulation as described by the neoclassical growth model can explain much of the observed decline in regional dispersion in Canada relative to the northern states. However, it appears that Canadians are more likely than residents of the northern states to remain in regions where they do not have jobs, a factor which contributes to the persistently higher level of regional dispersion of output per capita in Canada.

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Bibliographic Info

Article provided by University of Toronto Press in its journal Canadian Public Policy.

Volume (Year): 25 (1999)
Issue (Month): 2 (June)
Pages: 155-178

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Handle: RePEc:cpp:issued:v:25:y:1999:i:2:p:155-178

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  1. Xavier Sala-i-Martin, 1995. "The classical approach to convergence analysis," Economics Working Papers 117, Department of Economics and Business, Universitat Pompeu Fabra.
  2. N. Gregory Mankiw, 1995. "The Growth of Nations," Harvard Institute of Economic Research Working Papers 1732, Harvard - Institute of Economic Research.
  3. Barro, R.J. & Mankiw, N.G. & Sala-i-Martin, X., 1992. "Capital Mobility in Neoclassical Models of Growth," Papers 655, Yale - Economic Growth Center.
  4. Paul Krugman, 1992. "Geography and Trade," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262610868, December.
  5. Thomas J. Courchene, 1970. "Interprovincial Migration and Economic Adjustment," Canadian Journal of Economics, Canadian Economics Association, vol. 3(4), pages 550-76, November.
  6. Paul M Romer, 1999. "Increasing Returns and Long-Run Growth," Levine's Working Paper Archive 2232, David K. Levine.
  7. Robert J. Barro, 1996. "Determinants of Economic Growth: A Cross-Country Empirical Study," NBER Working Papers 5698, National Bureau of Economic Research, Inc.
  8. McCallum, John, 1995. "National Borders Matter: Canada-U.S. Regional Trade Patterns," American Economic Review, American Economic Association, vol. 85(3), pages 615-23, June.
  9. Marvin McInnis, 1968. "The Trend of Regional Income Differentials in Canada," Canadian Journal of Economics, Canadian Economics Association, vol. 1(2), pages 440-470, May.
  10. Carlino, Gerald & Mills, Leonard, 1996. "Are U.S. regional incomes converging? Reply," Journal of Monetary Economics, Elsevier, vol. 38(3), pages 599-601, December.
  11. Galor, Oded, 1996. "Convergence? Inferences from Theoretical Models," CEPR Discussion Papers 1350, C.E.P.R. Discussion Papers.
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Citations

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Cited by:
  1. Serge Coulombe, 2000. "New Evidence of Convergence Across Canadian Provinces: The Role of Urbanization," Regional Studies, Taylor & Francis Journals, vol. 34(8), pages 713-725.
  2. Chen, Shunlong & Arun, Thankom G., 2004. "Openness, Technological Capabilities and Regional Disparities in China," Centre on Regulation and Competition (CRC) Working papers 30622, University of Manchester, Institute for Development Policy and Management (IDPM).
  3. Surendra Gera & Samuel Laryea & Thitima Songsakul, 2005. "International Mobility of Skilled Labour: Analytical and Empirical Issues, and Research Priorities," International Trade 0507004, EconWPA.
  4. Basher, Syed A. & Fachin, Stefano, 2008. "The long-term decline of internal migration in Canada – Ontario as a case study," MPRA Paper 6685, University Library of Munich, Germany.
  5. MIHUŢ Ioana Sorina & LUŢAS Mihaela, 2013. "Testing Convergence And Divergence Among Eu Member States," Interdisciplinary Management Research, Faculty of Economics in Osijek, Croatia, vol. 9, pages 459-468.
  6. Joseph DeJuan & Marc Tomljanovich, 2005. "Income convergence across Canadian provinces in the 20th century: Almost but not quite there," The Annals of Regional Science, Springer, vol. 39(3), pages 567-592, 09.
  7. Juan David Barón Rivera, 2003. "¿Qué sucedió con las disparidades económicas regionales en Collombia entre 1980 y el 2000?," DOCUMENTOS DE TRABAJO SOBRE ECONOMÍA REGIONAL 003828, BANCO DE LA REPÚBLICA - ECONOMÍA REGIONAL.
  8. Firouz Fallahi & Gabriel Rodríguez, 2011. "Convergence In The Canadian Provinces: Evidence Using Unemployment Rates," Documentos de Trabajo 2011-322, Departamento de Economía - Pontificia Universidad Católica del Perú.
  9. Kessler, Anke & Lessmann, Christian, 2010. "Interregional Redistribution and Regional Disparities: How Equalization Does (Not) Work," CEPR Discussion Papers 8133, C.E.P.R. Discussion Papers.

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