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

  • Serge Coulombe
  • Kathleen M. Day

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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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. Robert J. Barro & N. Gregory Mankiw & Xavier Sala-i-Martin, 1992. "Capital Mobility in Neoclassical Models of Growth," NBER Working Papers 4206, National Bureau of Economic Research, Inc.
  2. Paul Krugman, 1992. "Geography and Trade," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262610868, June.
  3. Galor, Oded, 1996. "Convergence? Inferences from Theoretical Models," Economic Journal, Royal Economic Society, vol. 106(437), pages 1056-69, July.
  4. N. Gregory Mankiw, 1995. "The Growth of Nations," Harvard Institute of Economic Research Working Papers 1732, Harvard - Institute of Economic Research.
  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. Sala-i-Martin, Xavier, 1995. "The Classical Approach to Convergence Analysis," CEPR Discussion Papers 1254, C.E.P.R. Discussion Papers.
  7. Carlino, Gerald & Mills, Leonard, 1996. "Are U.S. regional incomes converging? Reply," Journal of Monetary Economics, Elsevier, vol. 38(3), pages 599-601, December.
  8. 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.
  9. Robert J. Barro, 1996. "Determinants of Economic Growth: A Cross-Country Empirical Study," NBER Working Papers 5698, National Bureau of Economic Research, Inc.
  10. 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.
  11. Paul M Romer, 1999. "Increasing Returns and Long-Run Growth," Levine's Working Paper Archive 2232, David K. Levine.
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