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By Malcolm Knight

Booklet via Knight, Malcolm, Howard, Victor, Jockel, Joseph T.

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Forest products also remain one of Canada's major sec- Page 9 tors; about one-seventh of total manufacturing shipments originate in this sector. Softwood lumber, pulp, and newsprint form a major component of the export mix. Seventy percent of forest product exports are destined for the United States. S. business cycle and to any protectionist measures the United States may choose to take. 0Source: OECD, Economic Surveys: Canada, 1993 The nonfuel mineral industry has experienced many booms in the past, but since 1970 it has undergone a period of relative stabilization and consolidation.

Starting in the 1970s, largely as a result of migration within Canada, there was also a pronounced shift in the Page 11 centers of population growth from Quebec and the eastern provinces to Ontario, Alberta, and British Columbia. The process of urbanization has been both rapid and extensive. At the time of Confederation in 1867, less than 20 percent of Canada's population lived in cities and towns. By 1931 that fraction had jumped to more than 50 percent, and by 1971 three our of every four Canadians were living in an urban center, a proportion that has remained fairly stable since then.

However, like governments in other industrial countries, Canadian governments also use tax policy extensively to influence aggregate output and employment, to achieve greater equity among income groups or across regions, or to provide incentives or disincentives for market participants to engage in particular activities. A typical example of such policies is the imposition of excise duties on liquor and cigarettes or the granting of subsidies, which are "negative taxes" to finance cultural activities.

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