The Regional Dimensions of Federal Intergovernmental and Interpersonal Transfers in Canada, 1981-2001

This contribution examines the effect of the explicit and implicit equalization activities of the Canadian federal government for the period 1981-2001. It deals with two programmes which transfer resources to provinces (the Equalization programme and the Canadian Health and Social Transfer); and two...

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Bibliographic Details
Published in:Regional & federal studies 2003, Vol.13 (4), p.130-152
Main Authors: Vaillancourt, François, Rault, stéphanie
Format: Article
Language:English
Subjects:
Canada
Convergence
Economic Development
Federal Government
Fiscal equity
Fiscal federalism
Fiscal Policy
Fiscal transfer
Gross domestic product
Income Distribution
Intergovernmental Relations
Intergovernmentalism
Local Government
Per capita income
Public Finance
Regional policy
Regional studies
Resource Allocation
Tax systems
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Summary:This contribution examines the effect of the explicit and implicit equalization activities of the Canadian federal government for the period 1981-2001. It deals with two programmes which transfer resources to provinces (the Equalization programme and the Canadian Health and Social Transfer); and two which transfer resources to individuals (the Employment Insurance and the Old Age Security Programmes). The focus on the implicit equalization effects of programmes not explicitly designed to favour poorer regions is novel. Taking explicit and implicit equalization together there is evidence of provincial convergence in terms of GDP per capita and personal income per capita on to the national average. This finding qualifies the hypothesis that equalization retards the economic growth of recipient regions.
ISSN:1359-7566
1743-9434
DOI:10.1080/13597560308559449