Advanced Search
MyIDEAS: Login to save this paper or follow this series

Les provinces canadiennes et la convergence : une evaluation empirique

Contents:

Author Info

  • Mario Lefebvre

    (Bank of Canada)

Registered author(s):

    Abstract

    This paper examines whether the hypothesis of economic convergence holds for the Canadian provinces. Using data on real gross domestic product per capita and on factor productivity from 1966 to 1992, the paper shows, using two different methods, that the convergence hypothesis cannot be rejected. This evidence supports the findings of other authors who have studied convergence among Canadian provinces. The first method estimates the relationship between the average growth rate in real per capita GDP and its initial level. In part because of the classic problem of regression towards the mean, it has been argued that this method is not suitable for testing the convergence hypothesis. The second method examines the trend in gaps in real per capita GDP and productivity between the richest provinces and the other provinces. It is the use of this method that distinguishes our work from previous studies, since it allows us not only to avoid some of the criticisms mentioned above, but also to examine developments in each province separately. Cette etude a pour but de determiner si l'hypothese de convergence economique s'applique aux provinces canadiennes. En utilisant les donnees du produit interieur brut reel par habitant et de la productivite des facteurs de production entre 1966 et 1992, l'etude montre, a l'aide de deux methodes distinctes, que l'on ne peut rejeter cette hypothese. Ce resultat confirme les conclusions auxquelles sont parvenus d'autres auteurs qui ont examine le phenomene de la convergence entre les provinces canadiennes. La premiere methode utilisee consiste a estimer la relation qui existe entre la croissance moyenne et le niveau initial du PIB reel par habitant. Se fondant entre autres sur le probleme classique du retour a la moyenne, certains chercheurs ont reproche a cette methode de ne pas tester adequatement l'hypothese de la convergence. La deuxieme methode, quant a elle, consiste a examiner la tendance des ecarts observes entre, d'une part, le niveau du PIB reel par habitant et de la productivite dans les provinces les plus riches et, d'autre part, le niveau de chacune de ces deux variables dans les autres provinces. L'etude se distingue de celles qui ont ete realisees jusqu'ici sur le sujet par l'utilisation de la deuxieme methode, qui, en plus de contourner les critiques mentionnees ci-dessus, nous a permis d'examiner separement le comportement de chaque province.

    Download Info

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
    File URL: http://www.bankofcanada.ca/wp-content/uploads/2010/04/wp94-10.pdf
    Download Restriction: no

    Bibliographic Info

    Paper provided by Bank of Canada in its series Working Papers with number 94-10.

    as in new window
    Length:
    Date of creation:
    Date of revision:
    Handle: RePEc:bca:bocawp:94-10

    Contact details of provider:
    Postal: 234 Wellington Street, Ottawa, Ontario, K1A 0G9, Canada
    Phone: 613 782-8845
    Fax: 613 782-8874
    Web page: http://www.bank-banque-canada.ca/

    Related research

    Keywords:

    This paper has been announced in the following NEP Reports:

    References

    References listed on IDEAS
    Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
    as in new window
    1. Carlino, Gerald & Mills, Leonard, 1996. "Are U.S. regional incomes converging? Reply," Journal of Monetary Economics, Elsevier, vol. 38(3), pages 599-601, December.
    2. Mankiw, N Gregory & Romer, David & Weil, David N, 1992. "A Contribution to the Empirics of Economic Growth," The Quarterly Journal of Economics, MIT Press, vol. 107(2), pages 407-37, May.
    3. Andrew B. Bernard & Steven N. Durlauf, 1991. "Convergence of International Output Movements," NBER Working Papers 3717, National Bureau of Economic Research, Inc.
    4. Dowrick, Steve & Nguyen, Duc-Tho, 1989. "OECD Comparative Economic Growth 1950-85: Catch-Up and Convergence," American Economic Review, American Economic Association, vol. 79(5), pages 1010-30, December.
    5. Lee, F.C. & Coulombe, S., 1993. "Regional Productivity Convergence in Canada," Working Papers 9318e, University of Ottawa, Department of Economics.
    6. Robert J. Barro & Xavier Sala-i-Martin, 1990. "Economic Growth and Convergence across The United States," NBER Working Papers 3419, National Bureau of Economic Research, Inc.
    7. Baumol, William J, 1986. "Productivity Growth, Convergence, and Welfare: What the Long-run Data Show," American Economic Review, American Economic Association, vol. 76(5), pages 1072-85, December.
    8. Gerald Carlino & Leonard Mills, 1990. "Persistence and convergence in relative regional incomes," Working Papers 90-23, Federal Reserve Bank of Philadelphia.
    9. Coulombe, S. & Lee, F.C., 1993. "Regional Economic Disparities in Canada," Working Papers 9317e, University of Ottawa, Department of Economics.
    10. Coulombe, S. & Lee, F.C., 1993. "Regional Economic Disparities in Canada," Working Papers 9317e, University of Ottawa, Department of Economics.
    11. Quah, Danny, 1993. " Galton's Fallacy and Tests of the Convergence Hypothesis," Scandinavian Journal of Economics, Wiley Blackwell, vol. 95(4), pages 427-43, December.
    12. Friedman, Milton, 1992. "Do Old Fallacies Ever Die?," Journal of Economic Literature, American Economic Association, vol. 30(4), pages 2129-32, December.
    13. Paul Romer, 1989. "Endogenous Technological Change," NBER Working Papers 3210, National Bureau of Economic Research, Inc.
    14. Baumol, William J & Wolff, Edward N, 1988. "Productivity Growth, Convergence, and Welfare: Reply," American Economic Review, American Economic Association, vol. 78(5), pages 1155-59, December.
    15. 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.
    16. Robert J. Barro & Xavier Sala-i-Martin, 1991. "Convergence across States and Regions," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 22(1), pages 107-182.
    17. Lee, F.C. & Coulombe, S., 1993. "Regional Productivity Convergence in Canada," Working Papers 9318e, University of Ottawa, Department of Economics.
    18. John F. Helliwell, 1996. "Convergence and Migration among Provinces," Canadian Journal of Economics, Canadian Economics Association, vol. 29(s1), pages 324-30, April.
    19. Oulton,Nicholas & O'Mahony,Mary, 1994. "Productivity and Growth," Cambridge Books, Cambridge University Press, number 9780521453455, April.
    20. Barro, Robert J & Sala-i-Martin, Xavier, 1992. "Convergence," Journal of Political Economy, University of Chicago Press, vol. 100(2), pages 223-51, April.
    21. repec:fth:harver:1532 is not listed on IDEAS
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as in new window

    Cited by:
    1. Lefebvre, M. & Poloz, S.S., 1996. "The Commodity-Price Cycle and Regional Economic Performance in Canada," Working Papers 96-12, Bank of Canada.
    2. Mario Lefebvre, 1997. "Les marchés du travail régionaux : une comparaison entre le Canada et les États-Unis," Working Papers 97-17, Bank of Canada.
    3. 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.

    Lists

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    Statistics

    Access and download statistics

    Corrections

    When requesting a correction, please mention this item's handle: RePEc:bca:bocawp:94-10. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ().

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.