Cahier 94-01-01 – Regional Business Creation and «Push» Factors : The Case of Quebec

Cahier 94-01-01 - Regional Business Creation and «Push» Factors : The Case of Quebec

Auteurs :  Jean-Marie Toulouse, Gilles Roy et Luc Vallé

ABSTRACT

We have undertaken to examine regional variations in business formation rates in Canada by concentrating first of all on the province of Quebec. This document provides preliminary results. They suggest that regional development is not best achieved through the direct creation of jobs, but rather through the promotion of workers’ mobility or through the removal of barriers to workers’ mobility. Such a policy may appear paradoxical to some, given that it could lead to the exodus of workers from certain regions where the govemment is investing to foster development and create jobs. However, the govemment’s costly effort is more likely to reduce workers’ mobility and be detrimental to the development of other regions where the workers would have relocated at no cost to taxpayers.

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