Economic growth and regional income disparities in Canada and the northernUnited States

This paper compares the evolution of regional disparities in per capita inc omes in Canada and the 12 American states along Canada's southern border. T he phenomenon of capital accumulation as described by the neoclassical grow th model can explain much of the observed decline in regional dispersion in Canada relative to the northern states. However, it appears that Canadians are more likely than residents of the northern states to remain in regions where they do not have jobs, a factor which contributes to the persistentl y higher level of regional dispersion of output per capita in Canada.