Economic diversification - model, myth or mischief?

Abstract

We’ve heard it all before - for more than a generation now - Alberta needs to diversify its economy. We hear that most often during downturns. The thinking is that if we just attract business other than extractive resources, that Alberta will have a more stable economic base, and we’ll get off the revenue roller coaster. But is that true? Is Alberta really a non-diversified economy? And if government is going to spend money, which is usually what diversification means, then where and how should that be spent to avoid the white-elephants of the past.

Trevor Tombe

Professor of Economics