Advances in Management and Applied Economics

Funding of Canadian Provinces, Mechanisms and Solidarity

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• Abstract

  Canada is a federal state made up of thirteen entities, ten Provinces and three Territories. This article focuses on the funding mechanisms of the ten Provinces which induce solidarity in favor of some of them. The aim of this article is thus to describe the funding mechanisms of the Canadian Provinces and to measure the solidarity, based on the rules and formula provided by the Canadian law and on calculations for the year 2009-2010. This article underlines the redistributive character of the Canadian system and reveals in some cases a paradox of revenues, leading some poor provinces becoming wealthier than others which were initially wealthier.