Notes

^1.

See: Baldwin and Macdonald (2009); Baldwin, Gu, and Yan (2011); and Baldwin and Yan (2012).

^2.

See Macdonald (2007).

^3.

See Wyman (2008). Bernard (2011) argued that it is not the changes in regional economic conditions themselves that cause workers to move, but rather changes in the personal income of workers. That is to say, workers tend to move from one region to another only after their incomes have been affected by changes in the economic conditions.

^4.

Contributions are measured in terms of GDP because GDP includes only value added, whereas sales include both value added and the value of intermediate inputs. A firm could have high sales but low GDP because it adds little to the value of the intermediate inputs it purchases.

^5.

At the head of this group of enterprises is an ultimate parent, an entity in a legal structure that controls through majority ownership one or more firms. As in Leung, Rispoli, and Gibson (2011), enterprises are consolidated into groups headed by an ultimate parent because it is the ultimate parent that is entitled to make decisions for the group of enterprises that it owns and controls.

^6.

In Leung, Rispoli, and Gibson (2011), the industry of a business was the industry where it paid out most of its wages.

^7.

The Business Register File is used to map all information from the above data sources to the appropriate ultimate parent enterprise group, the concept of the firm used in Leung, Rispoli, and Gibson (2011). See Leung, Rispoli, and Gibson (2011) for a detailed description of the data sources and method. In Leung, Rispoli, and Gibson (2011), the components of GDP are added up to the ultimate parent level and allocated to the size category of the group of enterprises belonging to it. Also, the entire unincorporated GDP components are allocated to the small-size category.

^8.

For a review of the data sources and methodology on estimating unincorporated GDP, see Rispoli (2009a,b,c).

^9.

Estimates were based on the Workplace and Employee Survey (Statistics Canada 2008).

^10.

Estimates for finance were done at a lower level of industry detail, the L Level in the input-output accounts, to take into account the different methods for calculating operating surplus by the different sectors. For example, net interest is calculated for industries whose principal activity involves financial intermediation (NAICS 52) while operating profits are calculated for all other finance industries (NAICS 53: real estate agents, rentals, etc).