The Economic History of Canada

Abstract

Canada is one of the richest countries in the world today. It stands above most countries in the Americas. It is also noticeably poorer than its American neighbour in spite of considerable geographic similarities. These two facts were true as early as the 17th century. Why? An understanding of Canada's historical path of economic growth can be acquired by focusing on three important gaps in living standards within Canada: First Nations versus the Rest of Canada; French-Canadians versus English-Canadians; Atlantic Canada versus the Rest of Canada. These three gaps allow us to understand the crucial role of institutions in determining why Canada is rich in a global perspective and why it is poorer than America. However, explanations as to why Canada grew richer than the rest of Latin America are more speculative.