Canadian Provincial Investment Climate

From 1998 to 2004, the surveys were used to assess and rank the investment climate of the Canadian prov- inces.2 This study uses the results from those surveys to create a quantifiable index of provincial investment climates. [...] Survey provides a brief history of the Investment Managers Survey (IMS), a profile of respondents, and a description of the components. [...] All surveys included questions rating the performances of the Bank of Canada and the federal minister of finance. [...] The second set of questions related to the respondents' subjective evaluations of the state of the investment climate in each of the Canadian provinces. [...] Components of a positive investment climate- results of the Investment Managers Survey The following section summarizes the results of the IMS regarding the poli- cies identified and ranked by respondents as contributing to, and sustaining, a positive investment climate.

The allocation of investment capital, both internationally and domestically, is increasingly acknowledged as a leading contributor to a jurisdiction's economic & success or failure. The Provincial investment climate index provides an important empirical measurement of investment climates.

Canada’s muted productivity growth during recent years has sparked concerns about the country’s investment climate. In this study, we develop a new natural language processing (NPL) based indicator, mining the richness of Twitter (now X) accounts to measure trends in the public perceptions of Canada’s investment climate. We find that while the Canadian investment climate appears to be generally favorable, there are signs of slippage in some categories in recent periods, such as with respect to governance and infrastructure. This result is confirmed by both survey-based and NLP-based indicators. We also find that our NLP-based indicators would suggest that perceptions of Canada’s investment climate are similar to perceptions of U.S. investment climate, except with respect to governance, where views of U.S. governance are notably more negative. Comparing our novel indicator relative to traditional survey-based indicators, we find that the NLP-based indicators are statistically significant in helping to predict investment flows, similar to survey-based measures. Meanwhile, the new NLP-based indicator offers insights into the nuances of data, allowing us to identify specific grievances. Finally, we construct a similar indicator for the U.S. and compare trends across countries.