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Power to the Periphery? The failure of Regional Convergence in Canada, 1890-2006

Chris Minns and Joan Rosés ()

No 12803, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: Economic historians have long signalled the importance of location-specific resource booms in the Canadian development experience, but a full analysis of the dynamics of Canada's internal income dynamics is conspicuously absent. This article presents comprehensive estimates of regional inequality in Canada from 1890 to 2006 and assesses the sources of convergence and divergence across Canadian provinces. Our convergence decompositions support the central role of resource booms in accounting for regional income dynamics, and show that structural change contributing relatively little to the development process. Our findings are in sharp contrast to the historical experience of other countries, including the United States.

Keywords: Canada; random growth theory; Regional Inequality; resource booms; structural change (search for similar items in EconPapers)
JEL-codes: N91 N92 R12 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-his and nep-ure
Date: 2018-03
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