| The topic of diversification has been studied extensively by academics and policy makers. The theory of diversification, dating back to the 1930s and the Great Depression, suggests that increasing the variety of industries in a region spreads the risk and reduces the likelihood that all industries will suffer a downturn at the same time. This serves to mitigate the boom and bust pattern often experienced by a heavy reliance on a limited number of industries, which in three of the four western provinces, means natural resource-based industries. This study examines diversification progress in the four western provinces over the last 30 years. The time span covers the greatest progress in trade liberalization policy in the nation’s history, and the evidence... |
