Racing to the Bottom? - Provincial Interdependence in the Canadian Federation (Hardcover, illustrated edition)

The spectre of a race to the bottom is increasingly prominent in debates about globalization and also within federal systems, where the mobility of both capital and individuals prompts fears of inter-jurisdictional competition. This volume asks whether Canadian provinces are racing to the bottom and, if so, with what consequences? Contributors offer a rich theoretical and empirical picture of interprovincial competition in several different policy fields. Contrary to dire predictions of a downward spiral in provincial standards, the authors find that Canadian provinces have continued to increase their taxes on capital, maintained and occasionally increased environmental standards, restrained their reliance on subsidies to attract investment, and successfully increased welfare benefits and excise taxes in at least some periods. In explaining the provinces' resistance to a race to the bottom, it is noteworthy that, in addition to capital, ideas and information also flow freely within a national political community. by other jurisdictions, and the resulting upward pressure for emulation can counteract downward pressures from mobile actors. This timely, practical volume will be of interest to public policy practitioners, as well as to students and scholars of economics and political science.