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The role of the interprovincial transfers in theβ‐convergence process

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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 theβ‐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 ofβ‐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 ofI(0) orI(1) disturbances.

Suggested Citation

  • Gabriel Rodríguez, 2006. "The role of the interprovincial transfers in theβ‐convergence process," Journal of Economic Studies, Emerald Group Publishing Limited, vol. 33(1), pages 12-29, January.
    • Handle: RePEc:eme:jespps:01443580610639875
    DOI: 10.1108/01443580610639875
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