Regional economic development by crown corporation : the case of Cape Breton

Abstract

Cape Breton Island provides a clear case of economic expansion, contraction, and diversification throughout the last half of the 20th century. During this time, both the Government of Canada and the Government of Nova Scotia used Crown Corporations (state own enterprises) to implement a series of policies to promote economic development in a climate of growing unemployment with declining resource-based industries. -- There has been uncertainty as to whether Crown Corporations have helped or hindered the diversification of Cape Breton's economy. Some Crown Corporation where better at this task, while others provided limited benefits to the economy and squandered critical government funds with no return on investment. Using various theories on regional economic development, the role of Industrial Estates Limited, the Cape Breton Development Corporation, the Sydney Steel Corporation, and Enterprise Cape Breton Corporation is examined.