Natural Resource Shocks and the Federal System: Boon and Curse?

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Authors

Boadway, Robin

Date

2006-09

Type

working paper

Language

en

Keyword

Fiscal Federalism 2007

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Abstract

The most stunning development affecting Canadian fiscal federalism in recent years has been the unprecedented oil and gas boom in Alberta and to a lesser extent its neighboring provinces. This has led to an ongoing shift of economic activity and of people to Alberta, and a level of horizontal imbalance between Alberta and the rest of Canada that is beyond the capability of the equalization system to address. Moreover, there is the prospect for a great deal of possibly painful restructuring of industry elsewhere, including the manufacturing sector in central Canada. The purpose of this paper is to speculate on the implications of a major regional oil and gas boom—or any resource boom for that matter—for fiscal federalism and the operation of the decentralized Canadian federation.

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Paper from the IIGR "Fiscal Federalism and the Future of Canada – Conference Proceedings" held Sept 28-29, 2006 – Folio 4

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Queen's University Institute of Intergovernmental Relations

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