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Interprovincial migration and local public goods.

K M Day

    The Canadian Journal of Economics. Revue Canadienne D'Economique
    |February 1, 1992
    PubMed
    Summary
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    Canadian government spending influences where people move between provinces. Different types of spending have varying impacts on migration patterns, affecting population distribution.

    Area of Science:

    • Economics
    • Public Policy
    • Demography

    Background:

    • Interprovincial migration is a significant factor in Canada's regional economic development.
    • Understanding the drivers of migration is crucial for effective fiscal and social policy.
    • Previous research has explored various migration determinants, but the specific impact of fiscal policies requires further investigation.

    Purpose of the Study:

    • To determine if fiscal policies, specifically government tax and expenditure patterns, influence interprovincial migration in Canada.
    • To analyze the relationship between provincial government spending and migration flows.

    Main Methods:

    • Development of a multinominal logit model to simulate individual migration choices based on maximizing utility.
    • Estimation of the model using aggregate Canadian data spanning from 1962 to 1981.
    Keywords:
    AmericasCanadaDemographic FactorsDeveloped CountriesEconomic FactorsEnvironmentExpendituresFinancial ActivitiesGovernmentMigrationMigration, InternalNatural ResourcesNorth AmericaNorthern AmericaPolicyPolitical FactorsPopulationPopulation DynamicsTaxation

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    Main Results:

    • Provincial government spending was found to significantly influence interprovincial migration flows.
    • The magnitude and direction of this influence varied depending on the specific type of government expenditure.
    • The study identified a fiscal inducement for migration within Canada.

    Conclusions:

    • Government spending policies are a demonstrable factor in shaping Canadian interprovincial migration.
    • Intergovernmental transfer payments and provincial natural resource revenues may also impact migration dynamics.
    • Policy interventions related to fiscal measures could be used to influence population distribution across Canadian provinces.