Theory and Practice
Chapter 5: Canada’s Economic Development and Integration
Page 157 5. Canada's Economic Development and Integration The theme of this book is North American economic integration. As economists have long known, the advantages of international trade and integration stem largely from the differences amongst the parties involved. This chapter deals with the dual issues of economic differences and economic integration as viewed from a Canadian perspective. There are two fundamental aspects of the Canadian situation which differentiate it from the United States and Mexico: Canada's geographical setting, and the importance of regionalism in Canada. After a discussion of these two defining characteristics of the Canadian reality this chapter covers: 1. a brief history of Canada's economic development prior to World War II (1939), with special emphasis on a specific theory of economic development (the ‘staples’ theory) and on policies of that era relating to international trade and integration; 2. a review of the Canadian economy since World War II, with particular attention paid to evolving trading relationships and the question of whether these have affected the performance of the economy or the ability to exercise independent economic policies; 3. a brief survey of Canada's economic resources in the 1990s with special emphasis upon its people (‘human capital’); and 4. a discussion of a number of recent traderelated policy issues in Canada including Canada's social and regional development programs, the place of ‘cultural’ industries, foreign ownership, inter Page 158 provincial trade barriers as indicated by the recent ‘beer wars’, separation in Quebec and government for indigenous peoples. GEOGRAPHY...
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