Does price really converge among provinces in Canada？ A study using unit root tests for cross-sectional panels

This paper examines price convergences across different provinces in Canada using 1983-2006 data. We adopt the new panel unit root tests for analysis that can correct for cross-sectional correlation. Our findings are contrary to previous studies and we conclude that intra-national price convergence does not occur. We also briefly discuss the reasons for the absence of convergence within Canada.