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A note on convergence across Canadian provinces: new insights from the club clustering algorithm

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  • Mahamat Hamit-Haggar

Abstract

This paper employs the newly-developed convergence tests introduced by Phillips and Sul (Econometrica 75:1771–1855, 2007 ) to investigate convergence of real GDP per capita across Canadian provinces, as well as the transitional path of factors behind the convergence or divergence pattern. In contrast with previously published studies on Canadian provincial convergence, the analysis carried out in this paper allows for heterogeneous technology and reveals that Canadian provinces are characterized by distinct convergent clubs, that is, separate convergence clubs that converge to different steady states. We make the case that the findings presented in this paper are of utmost importance for Canadian policy-makers as they seek to develop effective policy measures to address regional economic disparities. Copyright Springer-Verlag 2013

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  • Mahamat Hamit-Haggar, 2013. "A note on convergence across Canadian provinces: new insights from the club clustering algorithm," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 50(2), pages 591-601, April.
    • Handle: RePEc:spr:anresc:v:50:y:2013:i:2:p:591-601
    DOI: 10.1007/s00168-012-0500-x
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    Cited by:

    1. Evan Capeluck, 2014. "Convergence Across Provincial Economies in Canada: Trends, Drivers, and Implications," CSLS Research Reports 2014-03, Centre for the Study of Living Standards.
    2. Augusto Delgado & Gabriel Rodríguez, 2013. "Growth of the Peruvian Economy and Convergence in the Regions of Peru: 1970-2010," Documentos de Trabajo / Working Papers 2013-365, Departamento de Economía - Pontificia Universidad Católica del Perú.
    3. Delgado Narro, Augusto Ricardo, 2020. "The Process of Convergence among the Japanese Prefectures: 1955 - 2012," MPRA Paper 100361, University Library of Munich, Germany.
    4. Paul Johnson & Chris Papageorgiou, 2020. "What Remains of Cross-Country Convergence?," Journal of Economic Literature, American Economic Association, vol. 58(1), pages 129-175, March.
    5. Martin Victor & Vazquez Guillermo, 2015. "Club convergence in Latin America," The B.E. Journal of Macroeconomics, De Gruyter, vol. 15(2), pages 791-820, July.
    6. Mark J. Holmes & Jesús Otero & Theodore Panagiotidis, 2022. "Convergence in retail gasoline prices: insights from Canadian cities," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 68(1), pages 207-228, February.
    7. Jacek Batog & Barbara Batog, 2021. "Marginal Vertical Convergence: New Approach in Real Convergence Analysis," European Research Studies Journal, European Research Studies Journal, vol. 0(1), pages 1073-1088.
    8. Kinfemichael, Bisrat & Morshed, A.K.M. Mahbub, 2019. "Convergence of labor productivity across the US states," Economic Modelling, Elsevier, vol. 76(C), pages 270-280.

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    More about this item

    Keywords

    C01; E61; O11; O51;
    All these keywords.

    JEL classification:

    • C01 - Mathematical and Quantitative Methods - - General - - - Econometrics
    • E61 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Policy Objectives; Policy Designs and Consistency; Policy Coordination
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O51 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - U.S.; Canada

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