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Human Capital, Urbanization, and Canadian Provincial Growth

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  • Serge Coulombe

    ()
    (Department of Economics, University of Ottawa)

Abstract

This paper investigates the conditional convergence of both human capital indicators and nominal per capita income across Canadian provinces in a panel-data empirical framework. Long-run relative provincial steady states are determined by relative rates of urbanization, onetime shocks to Quebec’s and Alberta’s relative steady states, and a Nova Scotia fixed effect. Indicators of relative human capital ratios appear to have converged following a pattern that is common and similar to per capita income but with two notable exceptions. First, in Alberta, the 1973 oil shock contributed to the rise in per capita income but its effect on human capital is significant only for females. Second, human capital appears to remain concentrated in the relatively poor province of Nova Scotia. Two notable findings come out of the analysis. First, nominal income disparities at the provincial level appear to be real, not just nominal. Second, the analysis suggests that at the regional level, human capital is a necessary but not sufficient condition for being wealthier in the long run.

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Bibliographic Info

Paper provided by University of Ottawa, Department of Economics in its series Working Papers with number 0105E.

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Length: 27 pages
Date of creation: 2001
Date of revision:
Handle: RePEc:ott:wpaper:0105e

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Keywords: convergence; urbanization; regional growth; human capital; Canadian regions; neoclassical growth model;

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References

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  1. Klette, T.J. & Moen, J. & Griliches, Z., 1999. "Do Subsidies to Commercial R&D Reduce Market Failures? Microeconometric Evaluation Studies," Papers 16/99, Norwegian School of Economics and Business Administration-.
  2. Isabel Busom, 2000. "An Empirical Evaluation of The Effects of R&D Subsidies," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 9(2), pages 111-148.
  3. Petrakis, Emmanuel & Poyago-Theotoky, Joanna, 2002. "R&D Subsidies versus R&D Cooperation in a Duopoly with Spillovers and Pollution," Australian Economic Papers, Wiley Blackwell, vol. 41(1), pages 37-52, March.
  4. Miyagiwa, Kaz & Ohno, Yuka, 2002. "Uncertainty, spillovers, and cooperative R&D," International Journal of Industrial Organization, Elsevier, vol. 20(6), pages 855-876, June.
  5. Lakdawalla, Darius & Sood, Neeraj, 2004. "Social insurance and the design of innovation incentives," Economics Letters, Elsevier, vol. 85(1), pages 57-61, October.
  6. Ekholm, Karolina & Torstensson, Johan, 1996. "High-Technology Subsidies in General Equilibrium: A Sector-Specific Approach," Working Paper Series 467, Research Institute of Industrial Economics.
  7. Poyago-Theotoky, Joanna, 1998. "R&D Competition in a Mixed Duopoly under Uncertainty and Easy Imitation," Journal of Comparative Economics, Elsevier, vol. 26(3), pages 415-428, September.
  8. Stephen Martin & John T. Scott, 1999. "The Nature of Innovation Market Failure and the Design of Public Support for Private Innovation," CIE Discussion Papers 1999-02, University of Copenhagen. Department of Economics. Centre for Industrial Economics.
  9. Minoru Kitahara & Toshihiro Matsumura, 2006. "Realized Cost-Based Subsidies For Strategic R&D Investments With "Ex Ante" And "Ex Post" Asymmetries," The Japanese Economic Review, Japanese Economic Association, vol. 57(3), pages 438-448.
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Cited by:
  1. Serge Coulombe & Jean-Francois Tremblay, 2009. "Education, Productivity and Economic Growth: A Selective Review of the Evidence," International Productivity Monitor, Centre for the Study of Living Standards, vol. 18, pages 3-24, Spring.
  2. Farhad Noorbakhsh, . "Spatial inequality and polarisation in India," Working Papers 2004_5, Business School - Economics, University of Glasgow.
  3. Farhad Noorbakhsh, . "The Dynamics of Spatial Inequality and Polarisation in Iran," Working Papers 2003_17, Business School - Economics, University of Glasgow.
  4. Steven Yamarik, 2006. "Solow and the states: New evidence," Regional Studies, Taylor & Francis Journals, vol. 40(6), pages 571-582.
  5. Farhad Noorbakhsh, . "Human Development and Regional Disparities in India," Working Papers 2003_12, Business School - Economics, University of Glasgow.

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