Abstract
It has been suggested that provincial and national multipliers may provide incorrect estimates of the economic impacts when examining distinct communities. Using data collected from a comprehensive survey of household spending on two First Nations in Saskatchewan, Canada, we use Input-Output models to refine regional multipliers for these distinct populations. We also estimate the rate of economic leakage and the economic impacts of First Nation spending. Results indicate that economic leakage rates for First Nation economies is roughly 90 percent; meaning that 90 cents of every dollar spent by First Nations for goods and services occurs off-reserve. Using our new multipliers, we find that First Nation spending contributes over $741 million to Saskatchewan’s GDP, creates approximately 11,244 full-time jobs, and leads to an estimated increase of over $462 million in labor force income for the province. If policy makers intend to build on-reserve economies, strategies must be found to recapture off-reserve spending by providing comparable on-reserve goods and services. In the absence of on-reserve economic development, First Nation economic growth will likely remain stagnant with few wealth generating opportunities and lower standards of living for First Nation members.
Highlights
Compared to non-Aboriginal Canadians, Aboriginal people in Canada experience lower quality of life measures across a variety of metrics
In the case of One Arrow First Nation (OAFN) and Beardy’s Okemasis First Nation (BOFN), on-reserve stores enroll in the Provincial Fuel and Tobacco Tax Refund Program that removes Provincial Sales Tax (6 percent) on fuel and tobacco products for First Nation members
$9.3 out of $12 million in household spending occurs in Saskatoon and Prince Albert, the two closest Census Metropolitan Areas (CMAs) to OAFN and BOFN
Summary
Compared to non-Aboriginal Canadians, Aboriginal people in Canada experience lower quality of life measures across a variety of metrics These include lower standards of living, higher (c) Southern Regional Science Association 2020 ISSN 1553-0892, 0048-49X (online) www.srsa.org/rrs. Poverty and unemployment rates, higher dependency on welfare, inadequate housing, lower educational achievement, higher rates of chronic disease, and lower life expectancy (Miller, 2012; National Collaborating Centre for Aboriginal Health, 2013; O’Sullivan and McHardy, 2008; Regan and Anderson, 2016). Researchers estimate that these conditions cost the Canadian Government $12 billion annually (Canadian Centre for Policy Alternatives, 2013). For scholars and First Nation leaders alike, having a sustainable, self-reliant economy is considered to be among the most important factors for improving the socio-economic circumstances of First Nation communities in Canada
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