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New Evidence of Convergence Across Canadian Provinces: The Role of Urbanization

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  • Serge Coulombe

Abstract

COULOMBE S. (2000) New evidence of convergence across Canadian provinces: the role of urbanization, Reg. Studies 34, 713-725. This paper uses the conditional convergence model for explaining the relative evolution of per capita income across the 10 provinces of the Canadian federation between 1950 and 1996. Provincial relative per capita income steady states are determined by the relative rates of urbanization. Empirical results indicate that the provinces have converged at a speed of about 5% per year and, since the mid-1980s, most provinces appeared to be in the neighbourhood of their respective steady state. The analysis also indicates that for the provinces of Alberta and Quebec, the convergence process was disturbed in the 1970s by different permanent level shocks to their long - run steady states. COULOMBE S. (2000) De nouvelles preuves de la convergence des provinces au Canada: le role de l'urbanisation, Reg. Studies 34, 713-725. Employant le modele de convergence conditionnelle, cet article cherche a expliquer l'evolution relative du revenu par tete a travers les dix provinces au Canada entre 1950 et 1996. A partir des taux d'urbanisation relatifs, on determine l'etat stationnaire du revenu relatif provincial par tete. Les resultats empiriques laissent voir la convergence des provinces a raison de 5 pour cent par an et demontrent que, depuis le milieu des annees 1980, la plupart des provinces sont voisines de leur etat stationnaire. Quant a l'Alberta et au Quebec, l'analyse montre aussi que le processus de convergence a ete perturbe dans les annees 70 suite aux divers chocs permanents a leur etat stationnaire normal a long terme. COULOMBE S. (2000) Neue Anzeichen der Konvergenz in allen kanadischen Provinzen: die Rolle der Verstadterung, Reg. Studies 34, 713-725. Der vorliegende Aufsatz bedient sich des bedingten Konvergenzmodells zur Erklarung der relativen Entwicklung des pro-Kopf Einkommes in allen zehn Provinzen der kanadischen Foderation im Zeitraum 1950-1996. Dauerzustande provinzieller, relativer pro-Kopf Einkommen werden durch die relativen Raten der Verstadterung bestimmt. Empirische Ergebnisse lassen erkennen, dass die Provinzen sich einander mit einer Geschwindigkeit von etwa 5% per Jahr nahern, und die meisten seit Mitte der achtziger Jahre nicht weit von ihrem respektiven Dauerzustand entfernt waren. Die Analyse lasst auch erkennen, dass in den siebziger Jahren der Annaherungsprozess in den Provinzen Alberta and Quebec verschiedene, ihre langfristigen Dauerzustande treffende, auf gleicher Hohe anhaltende Schlage erlitt.

Suggested Citation

  • 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.
  • Handle: RePEc:taf:regstd:v:34:y:2000:i:8:p:713-725
    DOI: 10.1080/00343400050192810
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    Cited by:

    1. Mark Partridge & M. Rose Olfert & Alessandro Alasia, 2007. "Canadian cities as regional engines of growth: agglomeration and amenities," Canadian Journal of Economics, Canadian Economics Association, vol. 40(1), pages 39-68, February.
    2. 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.
    3. Josep Lluis Carrion-I-Silvestre & Vicente German-Soto, 2007. "Stochastic Convergence amongst Mexican States," Regional Studies, Taylor & Francis Journals, vol. 41(4), pages 531-541.
    4. Manuel Pérez Montiel & Gislaine Cristina de Souza Rech & Judite Sanson de Bem, 2011. "Economic convergence: a regional and subregional view," ERSA conference papers ersa11p712, European Regional Science Association.
    5. Gabriel Rodríguez, 2006. "The role of the interprovincial transfers in the ß: Further empirical evidence for Canada," Journal of Economic Studies, Emerald Group Publishing, vol. 33(1), pages 12-29, January.
    6. Serge Coulombe, 2006. "Internal Migration, Asymmetric Shocks, and Interprovincial Economic Adjustments in Canada," International Regional Science Review, , vol. 29(2), pages 199-223, April.
    7. David Albouy, 2008. "The wage gap between Francophones and Anglophones: a Canadian perspective, 1970–2000," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 41(4), pages 1211-1238, November.
    8. David Albouy & Fernando Leibovici & Casey Warman, 2013. "Quality of life, firm productivity, and the value of amenities across Canadian cities," Canadian Journal of Economics, Canadian Economics Association, vol. 46(2), pages 379-411, May.
    9. Shengrong Lu & Yanwu Wang, 2015. "Convergence, technological interdependence and spatial externalities: a spatial dynamic panel data analysis," Applied Economics, Taylor & Francis Journals, vol. 47(18), pages 1833-1846, April.
    10. Phillips, Kerk L. & Kunrong, Shen, 2005. "What effect does the size of the state-owned sector have on regional growth in China?," Journal of Asian Economics, Elsevier, vol. 15(6), pages 1079-1102, January.
    11. Phillips, Kerk L. & Chen, Baizhu, 2011. "Regional growth in China: An empirical investigation using multiple imputation and province-level panel data," Research in Economics, Elsevier, vol. 65(3), pages 243-253, September.
    12. David Albouy, 2008. "The wage gap between Francophones and Anglophones: a Canadian perspective, 1970-2000," Canadian Journal of Economics, Canadian Economics Association, vol. 41(4), pages 1211-1238, November.
    13. Serge Coulombe, 2011. "Lagging Behind: Productivity and the Good Fortune of Canadian Provinces," C.D. Howe Institute Commentary, C.D. Howe Institute, issue 331, June.
    14. Lukas Matejovsky & Sandeep Mohapatra & Bodo Steiner, 2014. "The Dynamic Effects of Entrepreneurship on Regional Economic Growth: Evidence from Canada," Growth and Change, Wiley Blackwell, vol. 45(4), pages 611-639, December.
    15. Alasia, Alessandro, 2003. "Sub-Provincial Income Disparity in Canada: Evidence From 1992 to 1999," Agriculture and Rural Working Paper Series 28057, Statistics Canada.
    16. Marcelin Joanis & Fernand Martin & Suzie St-Cerny, 2004. "Quel avenir pour les politiques de développement régional au Québec ? (Version mise à jour le 9 août 2004)," CIRANO Project Reports 2004rp-05, CIRANO.

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    More about this item

    Keywords

    Convergence; Urbanization; Regional Growth; Canadian Regions; Neo-CLASSICAL Growth Model;
    All these keywords.

    JEL classification:

    • O41 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • R15 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Econometric and Input-Output Models; Other Methods

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