Regulating Investment Attraction: Canada's Code of Conduct on Incentives in a Comparative Context
Kenneth P. Thomas
Canadian Public Policy, 2011, vol. 37, issue 3, pages 343-357
In 1994's Agreement on Internal Trade, Canada's governments included a Code of Conduct on Incentives, which banned provincial subsidies to induce the relocation of existing facilities from one province to another. Based on interviews with federal officials, economic development consultants, and investment attraction and internal trade officials in all ten provinces, this article finds that the incidence of poaching and the size of relocated facilities have declined; however, significant instances of poaching remain. Moreover, the evidence suggests that the positive outcomes are more due to changes in provincial governments than any effect of the code.
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