Convergence across Canadian Provinces, 1961 to 1991.

The purpose of this study is to provide a new look at the evolution of regional disparities in Canada in the light of the recent convergence studies produced by European and American economists. The degree of convergence of a variety of per capita income and output measures from 1961 to today is analysed. The empirical analysis suggests that there is evidence of convergence in Canada for different measurements of per capita income and output since the early 1960s. During this period convergence has been helped by a favorable change in terms of trade and by government transfers and taxes. Our estimates of the convergence speed for Canadian provinces are of the same magnitude as those found for regions within the same country, and across countries, in European and American studies.