IDEAS home Printed from
   My bibliography  Save this paper

Convergence Across Provincial Economies in Canada: Trends, Drivers, and Implications


  • Evan Capeluck



Canada has long been characterized by significant regional disparities. Such inequalities can create and exacerbate regional tensions and lead to demands for further redistribution of wealth. The objective of this study is to report on the current state of provincial differences in twenty-five economic variables related to income, productivity, the labour market, well-being and fiscal capacity, and to analyze trends toward or away from convergence for these economic variables. This report also examines the factors influencing these trends and discusses the implications for the federation.

Suggested Citation

  • 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.
  • Handle: RePEc:sls:resrep:1403

    Download full text from publisher

    File URL:
    Download Restriction: no

    References listed on IDEAS

    1. John F. Helliwell, 1996. "Convergence and Migration among Provinces," Canadian Journal of Economics, Canadian Economics Association, vol. 29(s1), pages 324-330, April.
    2. Sala-i-Martin, Xavier X., 1996. "Regional cohesion: Evidence and theories of regional growth and convergence," European Economic Review, Elsevier, vol. 40(6), pages 1325-1352, June.
    3. 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.
    4. 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.
    5. Elspeth Hazell & Kar-Fai Gee & Andrew Sharpe, 2012. "The Human Development Index in Canada: Estimates for the Canadian Provincesand Territories, 2000-2011," CSLS Research Reports 2012-02, Centre for the Study of Living Standards.
    6. 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.
    7. 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.
    8. Serge Coulombe & Frank C. Lee, 1995. "Convergence across Canadian Provinces, 1961 to 1991," Canadian Journal of Economics, Canadian Economics Association, vol. 28(4a), pages 886-898, November.
    9. Alexander Bilson Darku, 2011. "The impact of trade liberalization and the fiscal equalization transfer policy on provincial income disparities in Canada: an application of GMM estimation," Applied Economics, Taylor & Francis Journals, vol. 43(13), pages 1679-1689.
    10. Mukesh Ralhan & Ajit Dayanandan, 2005. "Convergence of Income Among Provinces in Canada – An Application of GMM Estimation," Econometrics Working Papers 0502, Department of Economics, University of Victoria.
    11. Lars Osberg & Andrew Sharpe, 2011. "Moving from a GDP-Based to a Well-Being Based Metric of Economic Performance and Social Progress: Results from the Index of Economic Well-Being for OECD Countries, 1980-2009," CSLS Research Reports 2011-12, Centre for the Study of Living Standards.
    12. Lars Osberg & Andrew Sharpe, 2010. "The Index of Economic Well-Being," Challenge, Taylor & Francis Journals, vol. 53(4), pages 25-42.
    13. Joseph DeJuan & Marc Tomljanovich, 2005. "Income convergence across Canadian provinces in the 20th century: Almost but not quite there," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 39(3), pages 567-592, September.
    Full references (including those not matched with items on IDEAS)


    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.

    Cited by:

    1. Matthew Calver & Roland Tusz & Erika Rodrigues, 2015. "Interprovincial Migration in Canada: Implications for Output and Productivity Growth, 1987-2014," CSLS Research Reports 2015-19, Centre for the Study of Living Standards.
    2. Evan Capeluck, 2015. "Explanations of the Decline in Manufacturing Employment in Canada," CSLS Research Reports 2015-17, Centre for the Study of Living Standards.

    More about this item


    Regional Disparities; Inequality; Regional; Redistribution; Income; Productivity; Labour Markets; Well-Being; Fiscal Capacity; Convergence; Federation;

    JEL classification:

    • N92 - Economic History - - Regional and Urban History - - - U.S.; Canada: 1913-
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • J20 - Labor and Demographic Economics - - Demand and Supply of Labor - - - General
    • J10 - Labor and Demographic Economics - - Demographic Economics - - - General
    • J30 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - General
    • J40 - Labor and Demographic Economics - - Particular Labor Markets - - - General

    NEP fields

    This paper has been announced in the following NEP Reports:


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sls:resrep:1403. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (CSLS). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.