The Economic Implications of the Separatist Movement in the Province of Quebec

Gordon S. Finkelstein, The College of Wooster

Abstract

The political turmoil which was present in the Province of Quebec in the late 1970's, was a result of a separatist movement. This study attempts to measure whether the political movement affected the economic well-being of the region. Location theory was examined in order to understand the factors which determine the location of economic activity. Export base theory helped to e xplain what makes a region grow or contract.An econometric model was built using the fundamentals of these theories. The model is a crosssection/ time series. It measures unemployment rates and population for the ten provinces, and they are proxies for economic activity. This model is operationalized by a regression analysis. The results of the regression were partially successful. The independent variable D80 was extremely important since it islolated the year 1980 and was a measure of the economic impact suffered by Quebec, as a result of the political turmoil. This variable was significant for both the unemployment rate and population models. This study concludes that the economic well-being of the Province was affected by the political movement of the 1970's.