In this paper, we analyze regional income disparities and fiscal transfers changes in Canada from 1951 to 1991 based on statistical data and clarify their structure of change. For this purpose, this study describes that the changing inter-provincial differentials of personal income per capita is specified using Gini coefficient, the coefficient of variation and Theil's measure. The results of the survey lead to the following conclusions. The disparities gradually decreased from the early 1950s to late 1960s and dropped sharply in the early 1970s. During the following decade, the disparities tended to decrease significantly from the mid-1970s, and the decrease in disparities became steady in the early 1980s. Based on Theil's measure, the disparities within eastern provinces and between eastern and western regions showed a remarkable reduction. The role of fiscal transfers in the changing regional income inequalities is examined. The expanding disparities within western provinces during the 1980s are responsible for the diverging total disparities. We do not consider that economic growth rate had a significantly negative effect on the divergence of the regional inequalities. These results support disequilibrium and transition perspectives in the sense that an economic boom can increase the relative strength of expansion, and a depression can decrease the effect in Canada. It is true that the convergence of regional inequalities is mainly caused by the expanding fiscal transfers, but this does not mean a sustainable economic growth of low income provinces. This implies that they have increasingly depended upon government transfers in terms of economic well being.
WANG Peng-fei, Robert BAO, Catherine WONG
. Changing regional income disparities and fiscal transfers in Canada from 1951 to 1991[J]. GEOGRAPHICAL RESEARCH, 2011
, 30(7)
: 1309
-1318
.
DOI: 10.11821/yj2011070016
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