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The role of the interprovincial transfers in the ß: Further empirical evidence for Canada

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  • Gabriel Rodríguez

Abstract

Purpose – Based on the approach of Timljonavich and Vogelsang, the purpose of this paper is to present empirical evidence of the role of the federal transfers on the ß-convergence process in Canadian provinces. Design/methodology/approach – The paper uses information on annual personal income for the period 1926-1999 to present empirical evidence about the notion of ß-convergence for the ten Canadian provinces. Findings – The principal conclusion is that the inter-provincial transfers were not determinant or decisive to the attainment of deterministic convergence in the Canadian provinces. Originality/value – While the issue of convergence has been analyzed especially using cross-sectional data or panel data, this paper uses a time-series methodology with statistics recently proposed by Vogelsang and Bunzel, which are robust to the presence of I(0) or I(1) disturbances.

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Bibliographic Info

Article provided by Emerald Group Publishing in its journal Journal of Economic Studies.

Volume (Year): 33 (2006)
Issue (Month): 1 (January)
Pages: 12-29

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Handle: RePEc:eme:jespps:v:33:y:2006:i:1:p:12-29

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Related research

Keywords: Canada; Economic convergence; Income;

References

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  1. Loewy, Michael B. & Papell, David H., 1996. "Are U.S. regional incomes converging? Some further evidence," Journal of Monetary Economics, Elsevier, vol. 38(3), pages 587-598, December.
  2. Coulombe, S., 2000. "New Evidence of Convergence Across Canadian Provinces: the Role of Urbanization," Working Papers 0002e, University of Ottawa, Department of Economics.
  3. 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.
  4. Cashin, Paul, 1995. "Economic Growth and Convergence across the Seven Colonies of Australasia: 1861-1991," The Economic Record, The Economic Society of Australia, vol. 71(213), pages 132-44, June.
  5. Helmut Hofer & Andreas Worgotter, 1997. "Regional Per Capita Income Convergence in Austria," Regional Studies, Taylor and Francis Journals, vol. 31(1), pages 1-12.
  6. Serge Coulombe & Jean-François Tremblay, 2001. "Human capital and regional convergence in Canada," Journal of Economic Studies, Emerald Group Publishing, vol. 28(3), pages 154-180, September.
  7. Coulombe, S. & Lee, F.C., 1993. "Regional Economic Disparities in Canada," Working Papers 9317e, University of Ottawa, Department of Economics.
  8. Serge Coulombe & Frank C. Lee, 1995. "Convergence across Canadian Provinces, 1961 to 1991," Canadian Journal of Economics, Canadian Economics Association, vol. 28(4a), pages 886-98, November.
  9. Coulombe, Serge & Lee, Frank C., 1998. "Évolution à long terme de la convergence régionale au Canada," L'Actualité Economique, Société Canadienne de Science Economique, vol. 74(1), pages 5-27, mars.
  10. PERRON, Pierre & RODRIGUEZ, Gabriel, 1998. "GLS Detrending, Efficient Unit Root Tests and Structural Change," Cahiers de recherche 9809, Universite de Montreal, Departement de sciences economiques.
  11. 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.
  12. Coulombe, S. & Lee, F.C., 1993. "Regional Economic Disparities in Canada," Working Papers 9317e, University of Ottawa, Department of Economics.
  13. Coulombe, S., 2000. "New Evidence of Convergence Across Canadian Provinces: the Role of Urbanization," Working Papers 0002e, University of Ottawa, Department of Economics.
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Citations

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Cited by:
  1. Edgar Morgenroth, 2007. "The Regional Dimension of Taxes and Public Expenditure in Ireland," Papers WP195, Economic and Social Research Institute (ESRI).
  2. Josep Lluís Carrion-i-Silvestre & Vicente German-Soto, 2008. "Panel Data Stochastic Convergence Analysis of the Mexican Regions," IREA Working Papers 200805, University of Barcelona, Research Institute of Applied Economics, revised Apr 2008.
  3. 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.

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