Is Atlantic Canada Becoming More Dependent on Federal Transfers?

This study undertakes an empirical analysis to examine the proposition that the Atlantic provinces have become increasingly dependent of federal transfer payments in recent years. A framework is developed within which the question of dependence of the Atlantic Provinces on transfer payments for the period 1962-84 is analyzed. The analysis indicates that per capita total federal transfers to the region increased at a faster rate than the national average. However, per capital federal revenue raised in the region, compared to the country as a whole, increased at an even faster rate. The conclusion reached is that while the Atlantic provinces are dependent on federal transfer payments, the level of dependence has been decreasing in comparison to the national average in recent years.