This article assesses the economic performance of Canadian forest reliant c
ensus subdivisions (referred to as FRCs for the purposes of this paper) ove
r the period 1981 to 1991. FRCs performed reasonably well over the 10 year
period. The average annual rate of growth in base income was 1.7% per year.
However, the performance of FRCs is quite varied. Growth of non-forest sec
tors was the major contributor to growth in FRCs indicating a general tende
ncy for these CSDs to diversify and become less forest reliant over time. G
enerally, the FRCs that performed well over the period were the ones that i
nitially had one or more of the following characteristics: larger FRCs, FRC
s that were initially less forest reliant, FRCs with a higher paper and all
ied component in the forest sector and FRCs with lower initial wage rates.