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

Listed author(s):
  • Serge Coulombe

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.

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Article provided by Taylor & Francis Journals in its journal Regional Studies.

Volume (Year): 34 (2000)
Issue (Month): 8 ()
Pages: 713-725

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Handle: RePEc:taf:regstd:v:34:y:2000:i:8:p:713-725
DOI: 10.1080/00343400050192810
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References listed on IDEAS
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  1. Coulombe, S. & Tremblay, J.-F., 1999. "Human Capital and Regional Convergence in Canada," Working Papers 9906e, University of Ottawa, Department of Economics.
  2. Robert J. Barro & N. Gregory Mankiw & Xavier Sala-i-Martin, 1994. "Capital mobility in Neoclassical models of growth," Economics Working Papers 82, Department of Economics and Business, Universitat Pompeu Fabra.
  3. John F. Helliwell, 1996. "Convergence and Migration among Provinces," Canadian Journal of Economics, Canadian Economics Association, vol. 29(s1), pages 324-330, April.
  4. Cashin, Paul, 1995. "Economic Growth and Convergence across the Seven Colonies of Australasia: 1861-1991," The Economic Record, The Economic Society of Australia, vol. 71(213), pages 132-144, June.
  5. Robert J. Barro, 1991. "Economic Growth in a Cross Section of Countries," The Quarterly Journal of Economics, Oxford University Press, vol. 106(2), pages 407-443.
  6. Baumol, William J, 1986. "Productivity Growth, Convergence, and Welfare: What the Long-run Data Show," American Economic Review, American Economic Association, vol. 76(5), pages 1072-1085, December.
  7. Gerald A. Carlino & Richard Voith, 1989. "Accounting for differences in aggregate state productivity," Working Papers 90-1, Federal Reserve Bank of Philadelphia.
  8. Button, Kenneth J & Pentecost, Eric J, 1995. "Testing for Convergence of the EU Regional Economies," Economic Inquiry, Western Economic Association International, vol. 33(4), pages 664-671, October.
  9. N. Gregory Mankiw & David Romer & David N. Weil, 1990. "A Contribution to the Empirics of Economic Growth," NBER Working Papers 3541, National Bureau of Economic Research, Inc.
  10. Perron, P, 1988. "The Great Crash, The Oil Price Shock And The Unit Root Hypothesis," Papers 338, Princeton, Department of Economics - Econometric Research Program.
  11. Lee, F.C. & Coulombe, S., 1993. "Regional Productivity Convergence in Canada," Working Papers 9318e, University of Ottawa, Department of Economics.
  12. Robert J. Barro, 1998. "Determinants of Economic Growth: A Cross-Country Empirical Study," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262522543, September.
  13. M. Chatterji & J. H. Ll. Dewhurst, 1996. "Convergence Clubs and Relative Economic Performance in Great Britain: 1977-1991," Regional Studies, Taylor & Francis Journals, vol. 30(1), pages 31-39.
  14. Mario Lefebvre, "undated". "Les provinces canadiennes et la convergence : une evaluation empirique," Staff Working Papers 94-10, Bank of Canada.
  15. Costas Siriopoulos & Dimitrios Asteriou, 1998. "Testing for Convergence Across the Greek Regions," Regional Studies, Taylor & Francis Journals, vol. 32(6), pages 537-546, August.
  16. Serge Coulombe & Kathleen M. Day, 1999. "Economic Growth and Regional Income Disparities in Canada and the Northern United States," Canadian Public Policy, University of Toronto Press, vol. 25(2), pages 155-178, June.
  17. Perron, Pierre & Rodriguez, Gabriel, 2003. "GLS detrending, efficient unit root tests and structural change," Journal of Econometrics, Elsevier, vol. 115(1), pages 1-27, July.
  18. Helmut Hofer & Andreas Worgotter, 1997. "Regional Per Capita Income Convergence in Austria," Regional Studies, Taylor & Francis Journals, vol. 31(1), pages 1-12.
  19. Coulombe, Serge & Lee, Frank C., 1998. "Évolution à long terme de la convergence régionale au Canada," L'Actualité Economique, Société Canadienne de Science Economique, vol. 74(1), pages 5-27, mars.
  20. Perron, Pierre, 1992. "Racines unitaires en macroéconomie : le cas d’une variable," L'Actualité Economique, Société Canadienne de Science Economique, vol. 68(1), pages 325-356, mars et j.
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