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Social receptivity analysis of foreign direct investment in British Columbia Sugiyama, Kayoko 1976

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e «i  SOCIAL R E C E P T I V I T Y ANALYSIS OF FOREIGN  DIRECT INVESTMENT IN BRITISH COLUMBIA  BY  KAYOKO B.A., S o p h i a  SUGIYAMA University,  1971  A THESIS SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE DEGREE OF MASTER OF ARTS  in  the School of  Community  and R e g i o n a l  We a c c e p t  this  to  thesis  the required  Planning  as  conforming  standard  THE UNIVERSITY OF B R I T I S H COLUMBIA December , 1 9 7 6 (G)  Kayoko Sugiyama, 1976  In  presenting  an  advanced  the I  Library  further  for  his  of  this  thesis  degree shall  agree  scholarly  by  this  at  the U n i v e r s i t y  make that  it  purposes  written  for  freely  permission may  representatives. thesis  in p a r t i a l  is  financial  of  for  for extensive by  shall  that  not  Department o f  Community and Regional Planning  The  of  University  British  Columbia  Date  <  3 g<a^v-xW \^>. [G^Ko )  requirements I  agree  r e f e r e n c e and copying  of  this  copying  or  for  that  study. thesis  my D e p a r t m e n t  be a l l o w e d  permission.  2075 Wesbrook Place Vancouver, Canada V6T 1W5  the  t h e Head o f  understood  gain  of  B r i t i s h ' Columbia,  available  be g r a n t e d  It  fulfilment  or  publication  without  my  ABSTRACT  This direct  thesis identifies  investment  Historically, upon t h e  this  society with  A  foreign capital  survey  respect  to the  the  of o p i n i o n s  during  the  were h i g h l y v a l u e d , i n favour  and  of  but  i s not  [ ( s u c h as  income l e v e l s ) ,  that  province.  out  The  in their  the  their  past  The  mailed  and  i n the  regions.  development  This  result  residents,  a majority  b e n e f i t s i n terms of employment and  to favour One  possessed province.  groups, the  Since  revealed  r e s p o n d e n t s were  p o r t i o n o f B.C.  p r o v i s i o n of  people thought the  component  analysis  informed  the  business  reluctance  purpose B.C.  important  r e g i o n a l economic  satisfactory. the  in  by means o f a  almost h a l f of  local  depended  among s e l e c t e d  1975.  i n t e r p r e t e d i n d i f f e r e n t ways.  the  largely  which a t t r a c t e d  knowledge about F I to p a s t  and  respondents perceived  be  carried  that for a s i g n i f i c a n t  p a t t e r n of FI  may  has  Columbia.  ' ._.  population  further FI  from p r o v i n c i a l  criteria  "  summer o f  Contributions of FI  indicates  to t h i s  r e s p o n d e n t s were g e n e r a l l y w e l l  a basic understanding  apart  i n B.C.  i s s u e o f F I , an  was  sub-groups of the  questionnaire  not  of B r i t i s h  i s t o measure i n d i v i d u a l p r e f e r e n c e s  economic development.  societal  that  province  e x p l o i t a t i o n of n a t u r a l r e s o u r c e s ,  study  of past  i n the  a t t i t u d e s toward f o r e i g n  r e g i o n a l development  heavy i n f l o w s o f of  (FI)  social  future  present of economic  higher investment  interpretation is  economic b e n e f i t s g e n e r a t e d  by  FI  were n o t d i s t r i b u t e d pattern.  Another  e q u i t a b l y under the c u r r e n t  i s that  g o a l s have b e e n c h a n g i n g criteria.  A  n o t want any  final  F I , and  welfare  development  w i t h more e m p h a s i s on  interpretation  F I simply because  jobs, which might of  B r i t i s h Columbians'  i s that  t h e y had  have been d i r e c t l y  thus p e r c e i v e d the  non-economic  the r e s i d e n t s d i d  secured t h e i r  or i n d i r e c t l y  the  i s s u e from a s t r i c t l y  a n a l y s i s of responses  by  the f o r m u l a t i o n of the f o l l o w i n g development  In  the urban  Okanagan and developed  c e n t r e of Vancouver, Central  individual  and  paradigm:  the r e p i d l y  s u b - r e g i o n s , as w e l l  as  the h e a v i e s t ) ,  growing  i n the  least  sub-regions  the respondents'  a p p r o v a l o f f u t u r e F I was  a l s o r e v e a l e d t h a t r e c e p t i v e n e s s to  FI  inversely  frequently  investment  related  to the e x i s t i n g  of b e n e f i t s  of the major causes  future  level  a c c r u i n g from F I  spatial  and  social  between t h e r e s p o n d e n t s hinterland, collar groups,  and  of  from  inequities.  a l l suggest  workers,  that  Opinion  t h e m e t r o p o l i s and  between b u s i n e s s and blue c o l l a r  seemed  of opinion;"discrepancies.  c a p i t a l - i n t e n s i v e nature of FI i n resource i n d u s t r i e s exacerbated  lower.  i n the host r e g i o n .  Unequal d i s t r i b u t i o n be one  while  (where t h e p a s t F I i n f l o w s were  Regional analysis  to  lead  N o r t h E a s t , r e c e p t i v e n e s s t o F I were p o s i t i v e ;  the i n t e r i o r  such  result  economic s u b - r e g i o n s  to  was  own  viewpoint.  The  in  investment  union groups, and  the problem  The  often  differences  t h o s e from between  white  among v a r i o u s income of d i s t r i b u t i o n  of  the  iv  benefits  i s a major f a c t o r d e t e r m i n i n g  to F I .  The p r o v i s i o n  judging  the benefits  indicated  may w e l l  reflect  generated For FI  could  of FI.  FI  The l e s s f a v o u r a b l e  attitudes  education, the i n the province,  t h e skewed d i s t r i b u t i o n o f employment  by p a s t  sector,  be a p p r o a c h e d  s t r a t e d i e s f o r coping with  i n two ways: initiative  A negative  future  approach  f o r r e d i r e c t i o n o f investment  by r e s t r i c t i v e m e a s u r e s r s u c h a s an e n f o r c e m e n t o f P o s i t i v e approach centres  ment r e d i s t r i b u t i o n p o l i c i e s . investors  to modify  on b e n e f i t  The g o v e r n m e n t c o u l d  t h e i r investment  and employadvise  strategies.  Recommendations a r e made t o i n t e r n a l i z e t h e i r c o r p o r a t e within  opportunities  FI projects.  the public  guidelines.  foreign  l e s s formal  and t h e o l d t i m e r e s i d e n t s  suggests use o f p u b l i c patterns  receptiveness  o f employment was a c r i t e r i o n f o r  by women, p e o p l e w i t h  younger g e n e r a t i o n ,  their  the project  initiatives  region.  i n planning  e m p h a s i s on n o n - e c o n o m i c  The p u b l i c  f o r the regions factors.  sector  can also  b a s e d o n an  profits generate  increased  V  TABLE OF CONTENTS  CHAPTER I  CHAPTER I I  1.1.  General  1.2.  Purpose o f T h i s  1.3.  Definition  1.4.  S t r u c t u r e o f A n a l y s i s and H y p o t h e s e s t o ,Be T e s t e d  Perspective  1  Study  2  o f Terms  4  5  THE METHODOLOGY AND THE GENERAL CHARACTERISTICS OF THE RESPONDENTS  11  2.1.  Introduction  11  2.2.  G e o g r a p h i c and Demographic o f t h e Sample  Scope 12  2.3.  C h a r a c t e r i s t i c s o f t h e Sample  14  2.4.  Q u e s t i o n n a i r e R e t u r n R a t e and P r o c e s s i n g o f t h e Data  16  General C h a r a c t e r i s t i c s of the Respondents  17  Summary  19  2.5. 2.6. CHAPTER I I I  Page 1  INTRODUCTION  GENERAL ATTITUDES AMONG B.C. RESIDENTS TOWARD FOREIGN INVESTMENT  21  3.1.  Introduction  21  3.2.  Awareness o f B.C.'s I n t e r n a t i o n a l Trade R e l a t i o n s h i p s  22  A t t i t u d e s toward F o r e i g n i n General  24  3.3. 3.4. 3.5.  Investment  A t t i t u d e s toward Japanese D i r e c t Investment  33  Summary a n d C o n c l u s i o n  43  vi,  CHAPTER I V  CROSS-SECTIONAL ANALYSIS OF OPINIONS 4.1.  4.3.  47  Introduction  4.2. A t t i t u d i n a l  Differences  by Sex  50  A t t i t u d i n a l D i f f e r e n c e s by t h e L e n g t h o f R e s i d e n c e i n B.C.  53  4.4. R e c e p t i v i t y D i f f e r e n c e s Group 4.5.  4.6. CHAPTER V  by Age 58  The Impact o f E d u c a t i o n , I n c o m e , a n d N a t u r e o f J o b s on R e c e p t i v i t y  61  4.5.1. I n f l u e n c e o f E d u c a t i o n a l B a c k g r o u n d on O p i n i o n s  61  4.5.2. Income D i f f e r e n c e s  65  4.5.3. A n a l y s i s  66  Summary  by N a t u r e o f J o b s  and C o n c l u s i o n  70  RECEPTIVITY DIFFERENCES AMONG B.C. SUB-REGIONS  73  5.1.  Introduction  73  5.2.  Metropolis  5.3. 5.4.  D i f f e r e n c e s i n A t t i t u d e s by S u b - R e g i o n The R e l a t i o n s h i p between t h e amount o f Investment and R e c e p t i v e n e s s  80  Summary  89  5.5. CHAPTER V I  Page 47,  vs.Hinterland  Approach  and C o n c l u s i o n  74  84  FUTURE ROLE OF FOREIGN DIRECT INVESTMENT IN B R I T I S H COLUMBIA - CONCLUSIONS AND IMPLICATIONS  91  6.1. S y n o p o s i s o f M a j o r F i n d i n g s  91  6.2. S i g n i f i c a n c e and I m p l i c a t i o n s Findings  o f the  6.3. Recommendations f o r t h e P r o v i n c i a l Government a n d F o r e i g n I n v e s t o r s 6.3.1. Recommendations f o r t h e P r o v i n c i a l Government 6.3.2. Recommendations f o r Foreign Investors 6.4. C o n c l u s i o n  94 96 96 £ . 102 8  vii  PAGE LITERATURE CITED  104  SELECTED READINGS  105  APPENDICES  109  Appendix  I  B.C. S u r v e y o f I n t e r n a t i o n a l  I n v e s t m e n t 109  Appendix  II  Per C a p i t a V a l u e o f F a c t o r y Shipments i n B.C. E c o n o m i c S u b - R e g i o n s , 1971  113  viii  L I S T OF  TABLES PAGE  I  Q u e s t i o n n a i r e Return Rate  16  II  Age  17  III  R a n k i n g o f I m p o r t e r s o f B.C.  IV  R e s p o n s e s t o I s s u e - " T h e r e i s t o o much f o r e i g n b e i n g i n v e s t e d i n B.C."  V  Distribution  of Respondents  R e s p o n s e s t o I s s u e - "B.C. foreign countries."  N a t u r a l Resources  23 capital 26  n e e d s more i n v e s t m e n t f r o m 26  VI  Nature of Perceived C o n t r i b u t i o n s of FI  31.  VII  Nature of Perceived C o n t r i b u t i o n s Responses  31  VIII  Nature of Perceived Negative E f f e c t s  of FI  IX  Nature of Perceived Negative E f f e c t s Responses  - Sub-Group  X XI XII XIII  R e s p o n d e n t s ' P e r c e p t i o n o f B.C. Japanese C a p i t a l Is Involved  - Sub-Group  Industries  32 32 i n Which 37  Responses t o I s s u e - "Japanese i n v e s t m e n t w i l l i n c e a s e l o c a l employment o p p o r t u n i t i e s i n t h e f u t u r e . "  39  R e a c t i o n t o F I , P r e s e n t and F u t u r e : By M a l e Respondents  51  Reaction  t o F I and J a p a n e s e  I n v e s t m e n t : By  and  Female  the Length  o f R e s i d e n c e i n B.C. XIV  Reaction  XV  R e a c t i o n t o F I , and J a p a n e s e I n v e s t m e n t , P r e s e n t and F u t u r e : By E d u c a t i o n a l B a c k g r o u n d R e a c t i o n t o F I and J a p a n e s e I n v e s t m e n t : By Income Levels  XVI  to F u t u r e Japanese  56 I n v e s t m e n t : By Age  Group  62  64 66  PAGE XVII  Reaction of Job  t o F I and J a p a n e s e  XX XXI XXII  Nature 6  XVIII R e c e p t i v i t y D i f f e r e n c e s and t h e R e s t o f B.C. XIX  I n v e s t m e n t : By  between G r e a t e r  9  Vancouver 11  P e r c e i v e d C o n t r i b u t i o n s and N e g a t i v e E f f e c t s Metropolis vs Hinterland  of F I :  Reaction to Japanese Hinterland  vs  Investment:  Metropolis  79-"  80  Differences i n Attitudes Sub-Regions  t o w a r d F I : By  Differences i n Attitudes Sub-Regions  t o w a r d F I : By  Economic 82 Selected 87  X  L I S T OF FIGURES PAGE 1.  National Receptivity The  to Foreign  Enterprise:  U-Curve H y p o t h e s i s  2.  B r i t i s h Columbia  3. 4.  Toward F u t u r e I n v e s t m e n t f r o m F o r e i g n C o u n t r i e s "B.C. needs more i n v e s t m e n t f r o m f o r e i g n C o u n t r i e s ; " : By Age G r o u p  5. 6.  Economic  10 Regions  "B.C.; .meeds more i n v e s t m e n t f r o m c o u n t r i e s . " : By Income L e v e l s  13 45 58  foreign  "B.C. n e e d s more i n v e s t m e n t f r o m f o r e i g n c o u n t r i e s . " : By E c o n o m i c S u b - R e g i o n  65 83  xi  ACKNOWLEDGEMENTS  I wish to express Dr.  my  t h a n k s t o my  advisor,  Douglas Webster f o r h i s i n v a l u a b l e a d v i c e  many h o u r s material Dr.  spent  i n the  in editing thesis.  My  and  commenting upon  S t u d i e s , who  out  study  this  suggestions  and  g a v e me  acted  the to  of I n t e r n a t i o n a l  the o p p o r t u n i t y  as my  in clarifying  the  thanks are a l s o extended  J.W.C. T o m l i n s o n o f t h e D i v i s i o n  Business  and  to c a r r y  second a d v i s o r .  parts of t h i s  His  t h e s i s were most  helpful. I am advice Mrs.  and  Sylvia  Business of the My  indebted  t o P r o f e s s o r Brahm Wiesman f o r h i s  encouragement. Willie  of the  Administration  survey  I am  also indebted  to  D e p a r t m e n t o f Commerce  f o r her  help  q u e s t i o n n a i r e and  a p p r e c i a t i o n goes t o Mr.  i n the  also with  David  and  preparation  the  M a r s h a l l who  data a n a l y s i s . helped  me  correct English. This the  t h e s i s would not  cooperation  of these  have b e e n c o m p l e t e d  people.  without  1  CHAPTER I INTRODUCTION This direct A  thesis  identifies  investment  study  a n a l y s i s o f F I , based  conducted  by  on  i s devoted a public  P r o f e s s o r J.W.C. T o m l i n s o n  International C o l u m b i a and the r e s u l t s  attitudes  toward  (FI) i n t h e p r o v i n c e o f B r i t i s h  substantive part of t h i s  tivity  social  Business  c o u l d be  during the  utilized  Columbia.^"  to s o c i a l  opinion  recep-  survey  of the D i v i s i o n  S t u d i e s a t the U n i v e r s i t y  the author  foreign  of  summer o f 1975.  of  British Conceivably  as a r e f e r e n c e f o r f u r t h e r  comprehensive r e s e a r c h of t h i s  regional,  y e t a t the  same  time,  o  international  issue.  1.1.  Perspective  General FI  i n the  form o f m u l t i n a t i o n a l b u s i n e s s o p e r a t i o n s i s  a recent global  phenomenon.  L i t e r a t u r e on F I has  recognized  t h a t Canada has  historically  absorbed  absolute  amount o f F I among a l l t h e n a t i o n s . of a l l manufacturing, and  65  percent  74  Americans  (Grey R e p o r t ,  As  largest  o f 1967,  57  percent  percent of a l l petroleum-natural  of other mining  Canada were c o n t r o l l e d  the  by  smelting industries  in  non-residents, predominantly  by  1972).  and  S i n c e t h e l a t e 1960s, numerous  s t u d i e s c o n c e r n i n g F I have b e e n p u b l i s h e d , m a k i n g t h e public  aware o f t h e p r o b l e m s a c c o m p a n y i n g a p o w e r f u l  influence  in their  gas,  Canadian foreign  economy.  ^Throughout the study, f o r e i g n d i r e c t investment w i l l d e s i g n a t e d by t h e a b b r e v i a t i o n F I o r f o r e i g n i n v e s t m e n t .  be  2  Most economic that  l i t e r a t u r e on effects  FI  from  i s , i t s contributions  effects, savings  taxation and  perceived  an  interests  is  of  FI  at  on  the  1.2.  a  case,  the  Purpose  as of  British  for  investors  level  private  sectors.  the  effects  of  and  social,  these  well  national also  be  FI  and an  Canada, coincide  domestic  is  usually  catalyst  that  with  development  the  understand  than  as  provided  to  rather  payment  effective  i t i s necessary level  of  international  determine  the  whether the  examining  or  not  impacts  the  impact  whole. Study  been  economic  undertaken  I f , however,  FI  balance  Although  socio-  standpoint,  to  This  has  the  order  a  In  Columbia,  project  GNP,  p o l i c i e s , as  i t could  regional  economy  In  the  patterns.  region.  reviews  macro-economic  to  instrument  foreign  of  the  a  development w i t h i n  of  objectives  subject  tariff  development,  regional  this  and  consumption  as  economic for  of  this  are  not  only  previous  evaluation both  the  in  the  criteria  economic,  studies  were  of  in  at  public  for  but  FI  the and  assessing  also  political  themselves  not  sufficient. The the  purpose  this  social attitudes  public  opinion  to  measure  to  this  relevant for  of  the  toward  survey.  is  the  Since  policy  province.  results makers  to  foreign no  individual preferences  issue, to  study  should  f i l l  B.C.  provide  formulating  gap  by  investment,, by  previous in  a  examining means o f  attempt  was  society  with  new  a  made respect  a t t i t u d i n a l data  development  strategies  3  British ticular relied  Columbia p r o v i d e s  r e s e a r c h because;  setting  (1) The p r o v i n c e  on n a t u r a l r e s o u r c e  (2) The c a p i t a l - i n t e n s i v e included  a good  industries nature  (Early  par-  has h i s t o r i c a l l y  f o r i t s economic  o f resource  large inflows of foreign capital  development.  f o rthis  growth.  e x p l o i t a t i o n has  t o finance  resource  i n f l o w s o f E u r o p e a n c a p i t a l were e v e n t u a l l y  d i s p l a c e d by a s t e a d i l y  i n c r e a s i n g American investment.  the mid-1960s, t h e Japanese b u s i n e s s  sector started  From  to invest !  in  B.C. n a t u r a l r e s o u r c e  o f raw m a t e r i a l s . ) gional  industries  (3) R e g i o n a l  c o n c e n t r a t i o n o f income  province  efficient  (1) r a i s e s  allocation  criteria  i n terms o f r e -  problem.  and d i s t r i b u t i o n  o f natural resources.  i s concerned  resources, especially  efficiency  disparities,  a supply  the question o f e q u i t a b l e vs  Today when t h e w h o l e w o r l d primary  t o secure  and p o p u l a t i o n , w i t h i n t h e  i s a major development  Condition  i n order  with  the s c a r c i t y of  o f non-renewable  w h i c h have b e e n d o m i n a t i n g  ones,  economic  provincial  e c o n o m i c d e v e l o p m e n t p l a n n i n g may n o t be a s o v e r w h e l m i n g l y dominant  as they  once were.  f o r whom?" s h o u l d socially  be r e - e x a m i n e d i n o r d e r  equitable  When c o n d i t i o n creates the  another  spatial  to achieve  more  allocation. (2) i s added t o t h e above  dimension  to this  c a p i t a l - i n t e n s i v e nature  bated  The q u e s t i o n o f " d e v e l o p m e n t  and s o c i a l  i d e n t i f y which people  problem.  situation, i t  I f we assume t h a t  of past FI projects often  inequities,  there  exacer-  i s a need t o  have b e n e f i t e d and w h i c h segments o f  t h e p o p u l a t i o n have b o r n e t h e c o s t s o f d e v e l o p m e n t .  4  Condition largely Future  ( 3 ) , r e g i o n a l d i s p a r i t i e s w i t h i n B.C., i s  the r e s u l t  o f t h e economic growth p r o c e s s  F I might occur  i n s u c h a way t h a t i t w o u l d  some o f t h e d i s p a r i t i e s  among t h e s u b - r e g i o n s ,  r e d i r e c t i o n o f F I takes  place.  easily as  itself.  be t a c k l e d f r o m a p u r e l y  narrow  i f careful  Althoughtthxs i s s u e  could  economic p e r s p e c t i v e  r e g i o n a l employment and income i n c r e a s e a c c r u i n g  unless  p u b l i c d e c i s i o n s a r e based on i n f o r m a t i o n  public  preferences  regions,  policy  and t h e r e c e p t i v e n e s s  plans w i l l  not r e f l e c t  (such from F I ) ,  concerning  to future FI i n their  B.C. r e s i d e n t s '  real  needs and w a n t s f r o m F I . B a s e d on t h e q u e s t i o n s tifying  the preference  spatially  r a i s e d , t h e study  patterns  and a c c o r d i n g  of the population,  to societal  i n v e s t m e n t from Japan has c r e a t e d controversy,  a special  "Foreign In t h i s refers  considerable  Since  growing  political public  investment.  o f Terms D i r e c t Investment" (FI)  thesis,  t h e term  "foreign direct  investment"  t o a l l i n v e s t m e n t made b y t h e p r i v a t e c o r p o r a t i o n s  foreign cover  sub-groups.  on i d e n -  both  e m p h a s i s was made t o s o l i c i t  o p i n i o n toward Japanese 1.3. D e f i n i t i o n  focuses  countries.  not only  international labour, skills.  F I i s used here  financial  flows  transmission  technology,  i n the broadest  from  sense t o  between c o u n t r i e s , b u t a l s o t h e  of a l l resources,  that i s , capital,  as w e l l as m a n a g e r i a l and e n t e r p r e n e u r i a l  5  "Multinational The  term  enterprises offices  Corporation"  "multinational corporation"  which  control assets  and so f o r t h  Nations, carrier  1973).  refers  - factories,  - i n two o r more  o f and o f t e n  mines,  countries  Multinational corporations  to a l l sales  (United  are a  major  associated with F I .  "Region" The within purpose  term  "region"  the province of this  as  defined  as  sub-regional  refers  to various  of British  study,  nine  Columbia.  British  by t h e D e p a r t m e n t  geographic For the  Columbia  o f Economic  areas analytical  economic  Development  regions are used  2  1.4  Structure It  will  of Analysis  i s hypothesized  vary,  depending  vement  with  length  o f time  that  individuals'  on t h e degree  they  world  have view  observed or values.  differences, receptiveness  approached  from  approaches  are called  sectional",  in  and Hypothese  this  and  two d i f f e r e n t  t o Be  Tested  perceptions  of their  foreign investors, proximity  individuals' tual  boundaries.  occupational  invol-  to FI projects, the  FI i n their  region,  Recognizing  t o F I among  dimensions  of FI  B.C.  i n this  r e s p e c t i v e l y "demographic  or the  these  percep-  residents i s study.  These  cross-  "spatial".  I t s h o u l d be n o t e d t h a t t h e s e economic r e g i o n s u s e d s t u d y a r e n o l o n g e r p r e s e n t B.C. e c o n o m i c r e g i o n s .  6  The demographic c r o s s - s e c t i o n a l approach  identifies  whether some common u n d e r l y i n g t r a i n of thought v i s a v i s F I predominates among people i n v a r i o u s c r o s s - s e c t i o n s o f population.  The  p o p u l a t i o n i s f i r s t d i v i d e d i n t o two  p o t e n t i a l o p i n i o n l e a d e r s i n B.C. public.  communities and  groups:  the  general  Since the amount of knowledge or i n f o r m a t i o n  FI has an i n f l u e n c e on o p i n i o n formation, t h a t l o c a l e l i t e s have e a s i e r access o p p o r t u n i t i e s to be d i r e c t l y  and  the  concerning  i t i s assumed  to i n f o r m a t i o n and more  involved with foreign investors  than the general p u b l i c , i t i s hypothesized  that a d i s c r e -  pancy of o p i n i o n s w i l l e x i s t between the l o c a l o p i n i o n  leaders  group and the members of the g e n e r a l p u b l i c . The FI decision-making  process  i s highly centralized  among s e n i o r l e v e l s of governments, both f e d e r a l and  provincial,  and a few m u l t i n a t i o n a l c o r p o r a t i o n s .  this  decision-making  process  The  nature of  i s expected to c r e a t e f u r t h e r o p i n i o n  v a r i a t i o n between l o c a l community e l i t e s and  the  business  and p o l i t i c a l c i r c l e i n the m e t r o p o l i s , where the aggregate e f f e c t s of investment d e c i s i o n s on the are more immediately p e r c e i v e d .  The  p r o v i n c i a l economy  f a c t t h a t most economic  a n a l y s e s , both p u b l i c and p r i v a t e , have i d e n t i f i e d economic b e n e f i t s from F I i n Canada suggests t h a t business  l e a d e r s , who  s t u d i e s , would be  metropolitan  are l i k e l y to be f a m i l i a r w i t h  these  i n favour of F I .  Among l o c a l e l i t e s , t h a t business  net  i t i s not d i f f i c u l t to p r e d i c t  l e a d e r s w i l l be  i n favour of FI i n t h e i r  regions  s i n c e they p e r c e i v e t h a t i t w i l l l e a d to an i n c r e a s e i n the  7  volume o f t h e i r politicians to their  business.  a r e expected  lack of access  Academics a r e expected cultural  impacts  public.  I t i s expected  will  exist  provincial opposing The  Local bureaucrats  and l o c a l  t o b e i n a n e u t r a l p o s i t i o n due to central  decision-making  t o be more c o n c e r n e d  o f F I on l o c a l  communities  processes.  with  s o c i a l and  than  the general  t h a t a wide spectrum  3  of preferences  among v a r i o u s g r o u p s o f t h e B.C. p o p u l a t i o n , w i t h business  l e a d e r s and l a b o u r g r o u p s  polar positions analysis  occupying  i n terms o f a t t i t u d e s  i s extended  t o observe  toFI.  preference  patterns  among o t h e r c r o s s ^ s e c t i o n s o f t h e p o p u l a t i o n , i d e n t i f i e d b y sex,  a g e , l e n g t h o f r e s i d e n c e i n t h e p r o v i n c e , income,  and  nature  of job.  has  tended  t o b e n e f i t male, w h i t e  in  Because t h e i n v e s t m e n t p a t t e r n collar,  the p o p u l a t i o n , i t i s hypothesized  groups w i l l The  be l e s s  spatial  i n the past  and h i g h  that other  income g r o u p s  societal  receptive to future F I .  approach e x p l o r e s whether t h e r e a r e o p i n i o n  differences  among g e o g r a p h i c  are divided  into  those  from  areas  o f t h e p r o v i n c e . Responses  t h e Lower M a i n l a n d  and t h o s e  the r e s t o f t h e p r o v i n c e i n o r d e r t o d i s c o v e r whether is  any d i s t i n c t  foreign  from  there  d i f f e r e n c e o f o p i n i o n between t h e r e s i d e n t s o f  t h e m e t r o p o l i s and t h o s e with  education  investment  of the hinterland. indicates  Past  experience  t h a t F I p r o j e c t s have b e e n  The a u t h o r assumed t h a t t h e p e o p l e who h e l d t h e p u b l i c o f f i c e would r e s p o n d w i t h i n t h e i r c a p a c i t y as a " p u b l i c " person r a t h e r than r e s p o n d i n g as a p r i v a t e c i t i z e n .  8  frequently  conceived  from t h e s t a n d p o i n t  of the project's  aggregate c o n t r i b u t i o n t o p r o v i n c i a l economic The of  economic growth p r o c e s s tertiary  activities  has r e s u l t e d i n c o n c e n t r a t i o n  i n t h e Lower M a i n l a n d , r e i n f o r c i n g  the m e t r o p o l i s - h i n t e r l a n d As  development.  structure.  many d e v e l o p m e n t e c o n o m i s t s e x p l a i n , any d e v e l o p m e n t  p r o j e c t which succeeds  i n a t t r a c t i n g an i n d u s t r y t o t h e r e g i o n  4 generates This  a given  injection  of export  demand f o r o u t p u t due  increase  i n r e g i o n a l export  i n local  consumer s e c t o r s .  The t o t a l  o f t h e development p r o j e c t .  chain  of impacts, described  cess,  often  munities,  In B r i t i s h  as t h e e x p o r t  income s t r e a m : is  spent o u t s i d e  be  large  Since  demand l e a k a g e  the proportion  the region  i n the resource  and i n d i r e c t Columbia,  frontier  o f r e g i o n a l income  will  h i n t e r l a n d , many d e v e l o p m e n t  regions  the people outside  be l e s s r e c e p t i v e  that  ( n o n - l o c a l m u l t i p l i e r ) tends t o  economic s t r u c t u r e o f r e s o u r c e that  com-  from t h e r e g i o n a l  h a v e m i n i m a l i m p a c t s on r e g i o n a l g r o w t h i n t h e l o n g  hypothesis:  this  base m u l t i p l i e r p r o -  r e m a i n s m i n i m a l i n many r e s o u r c e  m a i n l y due t o h i g h  income  t h e autonomous  s e c t o r e x p a n s i o n i s t h e combined d i r e c t  benefit  income.  income becomes a s o u r c e o f i n c r e a s e d  t o t h e s e consumer s e c t o r e x p a n s i o n s p l u s  export  sector  suggests  run.  A u t h o r s s u c h as T i e b o u t , M i e r n y k , Silvers published representative studies economic s t r u c t u r e .  This  another  the metropolitan  to future FI i n their  projects  area  regions.  I s a r d , W e i s s , and regarding regional  9  The there  spatial  approach i s f u r t h e r  i s any c o r r e l a t i o n  extended  t o observe i f  between t h e s t a g e o f d e v e l o p m e n t o f  a r e g i o n and t h e r e c e p t i v i t y  to foreign enterprise.  and  a U-curve hypothesis w i t h  Simmonds(1973) p r e s e n t e d  Robock regard  t o t h e r e l a t i o n s h i p between t h e s t a g e o f d e v e l o p m e n t o f a country  and t h e n a t i o n a l r e c e p t i v i t y  to foreign enterprise.  When a n a t i o n h a s l o w l e v e l s o f income a n d modest or nonexistent manufacturing, mining, or other modern b u s i n e s s s e c t o r s , t h e n a t i o n may be s o a n x i o u s t o move a h e a d t h a t i t v a l u e s h i g h l y a n y t y p e o r amount o f f o r e i g n p r i v a t e i n v e s t m e n t . At an i n t e r m e d i a t e s t a g e o f d e v e l o p m e n t i n w h i c h an i n d i g e n o u s b u s i n e s s s e c t o r h a s b e g u n t o emerge, a n a t i o n may a s s i g n l o w e r v a l u e s t o t h e b e n e f i t s and h i g h e r v a l u e s t o t h e c o s t e l e m e n t s o f f o r e i g n business projects In c o u n t r i e s a t a r e l a t i v e l y advance stage o f development, r e c e p t i v i t y t o f o r e i g n e n t e r p r i s e may r i s e a g a i n t o a h i g h l e v e l , p a r t i c u l a r l y i f d o m e s t i c e n t e r p r i s e has expanded r a p i d l y enough s o t h a t m a j o r f o r e i g n b u s i n e s s s t i l l represent a r e l a t i v e l y small part of the t o t a l n a t i o n a l economy a n d o f a p a r t i c u l a r s e c t o r . (Robock a n d Simmonds,197 3, p.196.)  They  indicate  t h e r e l a t i o n s h i p between a c o u n t r y ' s  s t a g e o f d e v e l o p m e n t and i t s r e c e p t i v i t y  to foreign enterprise  m i g h t b e d e s c r i b e d a s a U-shape c u r v e  (as shown o n F i g . l )  with  on t h e v e r t i c a l  and  the l e v e l of r e c e p t i v i t y the country's An  a  similar  attempt  axis  stage o f development on t h e h o r i z o n t a l i s made i n t h i s  relationship  sub-regions.  plotted  exists  study  to observe  among e c o n o m i c a l l y  There a r e nine o f these  axis.  whether identifiable  i n B.C. and t h e y  10  represent It the  regions at various  s t a g e s o f economic  i s hypothesized that there w i l l stage o f development  receptivity  development.  b e some c o r r e l a t i o n  between  o f e a c h s u b - r e g i o n and t h e l e v e l o f  t o F I , which resembles t h e U-curve d e s c r i b e d  below.  FIGURE 1 National Receptivity to Foreign The U-Curve H y p o t h e s i s  Low  Enterprise:  u  Low  High C o u n t r y ' s Stage o f Development  These  two a p p r o a c h e s t o t h e a n a l y s i s o f s o c i a l  toward e x i s t i n g certain  social  and i n c o m i n g f o r e i g n as w e l l  among t h e p o p u l a t i o n . provide a policy which would  investment should  attitudes reveal  as g e o g r a p h i c p a t t e r n s o f p r e f e r e n c e I t i s hoped  framework  that  for strategic  i n v o l v e F I as a development  the r e s u l t s development generator.  will planning  11  CHAPTER I I THE  METHODOLOGY AND THE GENERAL CHARACTERISTICS OF THE RESPONDENTS  2.1.  Introduction This chapter  and  the general  presents  characteristics  to t h e survey.  A survey  of the people  of opinions  ment i n B.C. was c a r r i e d B.C.  t h e methodology used  The q u e s t i o n n a i r e  identify  B.C. r e s i d e n t s ' o p i n i o n s  existing  and incoming  general  who r e s p o n d e d  concerning  foreign invest-  questionnaire during the  f o r m a t was d e s i g n e d t o and p r e f e r e n c e s  f o r e i g n investment  regarding  i n the province i n  and Japanese p r i v a t e investment  copy o f t h e q u e s t i o n n a i r e prepared as  i n particular.  f o r t h e survey  A  i s attached  an appendix. Since the objectives of t h i s  survey  were t o o b t a i n a s  d i v e r s e a sample a s p o s s i b l e t h r o u g h o u t t h e p r o v i n c e , d i s t r i b u t i o n .was u s e d .  'Although-alternative* survey  such as i n t e r v i e w i n g , o b s e r v a t i o n , i n t e r v i e w i n g were c o n s i d e r e d , more t i m e c o n s u m i n g t h a n t h i s method h a d o b v i o u s opportunity  methods  town m e e t i n g s and  t h e y were e i t h e r  mail questionnaires. limitations,  mail  telephone  too costly or Even  though  i . e . n o n - r e s p o n s e , no  t o supplement t h e r e s p o n d e n t ' s answers by o b s e r -  v a t i o n a l data, it  study  o u t among s e l e c t e d segments o f t h e  p o p u l a t i o n b y means o f a m a i l e d  summer o f 1975.  i n this  no o p p o r t u n i t y  t o probe beyond t h e g i v e n  was b e l i e v e d t h a t d e l i b e r a t e d e s i g n  c o u l d overcome some o f t h e s e  answer,  of the questionnaire  limitations.  12  Throughout international the  private  t h e s u r v e y , terms'- f o r e i g n  investment r e f e r r e d  capital,  originating 2.2.  labour,  Japanese  t e c h n o l o g y , as w e l l  i n J a p a n and c o n t r o l l e d  sample  was  " B r i t i s h Columbia ment o f Economic boundaries.  by J a p a n e s e  Scope  2.)  East  2.  C e n t r a l and Kootenay  of the  were u s e d as Major  Kootenay West  skills  nationals.  Sample province.  sub-regional  c i t i e s i n each s u b - r e g i o n  (which a r e l i s t e d b e l o w ) , were sampled Sub-region  inflows  R e g i o n s " as d e f i n e d by t h e D e p a r t -  Development  (See F i g u r e  to  as m a n a g e r i a l  taken from a l l p a r t s of the  Economic  1.  for direct  investment r e f e r r e d  G e o g r a p h i c and Demographic The  t o a l l i n v e s t m e n t made b y  corporations from foreign countries  investment purposes. of  i n v e s t m e n t and  f o r the survey.  Cities",Muffleipalit'les  arid Towns  Cranbrook, S p a r wood,,  Fernie,  Kimberley,  Nelson,  Trail  3 . Okanagan  Vernon,  Kelowna,  4.  Thompson  Kamloops  5.  G r e a t e r Vancouver  A l l c i t i e s and m u n i c i p a l i t i e s i n t h e Greater Vancouver R e g i o n a l D i s t r i c t  6. V a n c o u v e r  Island  Pentiction  V i c t o r i a , Campbell Port Alberni  7.  Central  P r i n c e George,  8.  North  Dawson C r e e k , F o r t  East  9. N o r t h West  River,  Nanaimo,  Quesnel S t . John  P r i n c e Rupert, K i t i m a t , Terrace  13  D E P A R T M E N T O F INDUSTRIAL D E V E L O P M E N T . T R A D E . A N D PARLIAMENT BUILDINGS VICTORIA. BRITISH COLUMBIA  COMMERCE  14  The to cover  number o f q u e s t i o n n a i r e s approximately  municipalities  0.1%  t o be m a i l e d  of the population of  i n the province,  estimated  o f December, 197 4  (Municipal S t a t i s t i c s  District,  1,994  in  the  1975).  selected c i t i e s  was  stratified  and  regional centre.  2.3.  and  according  s u b - s a m p l e was  potential  investment  million  as  i n c l u d i n g Regional  municipalities.  The  to the p o p u l a t i o n  to r e s i d e n t s  distribution  s i z e o f each  sampling  taken  of a  city  from people  who  community o r r e g i o n .  " g e n e r a l p u b l i c " group,  The  residents.  were l i k e l y s u c h as  other  s e l e c t e d on  to  foreign  sub-sample a random  basis.  Opinion  L e a d e r s were s e l e c t e d f r o m f i v e  classifications:  business  representatives,  p r e s i d e n t s of  school  represent  m a j o r g r o u p s o f B.C.  opinion leaders regarding matters  in their  consisted  and  2,1  incorporated  q u e s t i o n n a i r e s were m a i l e d  sample c o n s i s t e d o f two  separate  be  at  estimated  C h a r a c t e r i s t i c s o f the. Sample The  A  was  t e a c h e r s . The the  social  local  chambers o f  screening process  groups i n s e l e c t e d  social  officials,  was  p o i n t s o f view o f v a r i o u s  political-administrative Respondents i n f i v e  leaders, municipal  different  union  commerce,  designed  to  economic  and  localities.  s u b - g r o u p s were c h o s e n i n t h e f o l l o w i n g  manner: "Business quarters 1974,  Leaders" i n B.C.  (95)"*": P r e s i d e n t s o f c o r p o r a t i o n s w i t h  head-  were s e l e c t e d f r o m t h e D i r e c t o r y o f D i r e c t o r s ,  P u b l i c s e c t o r f i r m s and  ''"Number i n b r a c k e t s sub-group.  s u b s i d i a r i e s or a f f i l i a t e s  i n d i c a t e t h e number s a m p l e d  of  i n each  15  f o r e i g n c o m p a n i e s were e x c l u d e d "Municipal  Officials"  were o b t a i n e d April  from B r i t i s h  1975,distributed  Questionnaires principal and  (123):  Columbia M u n i c i p a l  officials  Officials,  t o mayors o r s e n i o r e l e c t e d  officers  regional districts  Names o f m u n i c i p a l  by t h e D e p a r t m e n t o f M u n i c i p a l  were s e n t  appointed  from t h e sample.  Affairs. officials,  and c l e r k s o f t h e c i t i e s ,  selected f o r the  "Labour Union R e p r e s e n t a t i v e s "  towns  survey.  ( 9 9 ) : Names o f p r e s i d e n t s o r  senior representatives o f labour  unions based  i n B.C.  were  c h o s e n f r o m t h e B.C. L a b o u r D i r e c t o r y , 1974, d i s t r i b u t e d  by  the Department o f Labour. "Chamber local List  o f Commerce P r e s i d e n t s "  (117):  A l lpresidents of  chambers o f commerce i n B.C. were i d e n t i f i e d o f Key C o n t a c t s  circulated  i n Chambers  by t h e B r i t i s h (124):  o f Commerce, B o a r d s o f T r a d e ,  C o l u m b i a Chamber  "School  Teachers"  schools  from  sampled  from t h e L i s t o f Schools  Principals  8 9 B r i t i s h Columbia  o f Commerce.  o f e l e m e n t a r y and s e c o n d a r y  school  d i s t r i c t s were  i n B r i t i s h Columbia  Names and A d d r e s s e s o f S e c r e t a r y - T r e a s u r e r s Head T e a c h e r s , 1974-75, p u b l i s h e d In t o t a l , five the  558 q u e s t i o n n a i r e s  from the  randomly  with  and P r i n c i p a l s o r  by t h e D e p a r t m e n t o f  Education.  were s e n t o u t t o p e o p l e i n t h e s e  sub-groups as r e p r e s e n t i n g  potential  opinion leaders i n  province. A "general  directories  p u b l i c " g r o u p was  s e l e c t e d from  o f r e l e v a n t c i t i e s and r e g i o n s ,  using  telephone random  16  numbers  to i d e n t i f y  specific  respondents.^  of q u e s t i o n n a i r e s mailed to people 2.4.  Q u e s t i o n n a i r e Return Rate 487 p e o p l e r e s p o n d e d  was  24%.  The a n a l y s i s was  questionnaires received  number  s u b ^ s a m p l e was  1,4 36.  and P r o c e s s i n g o f t h e Data  t o t h e s u r v e y and t h e r e t u r n carried  by J u l y  the r e t u r n s f o r a l l groups  i n this  The t o t a l  rate  out.with 478 u s a b l e  31, 1975. T a b l e I shows  surveyed.  TABLE I Questionnaire Return  Rate  Questionnaires Sent Opinion  Number o f R e t u r n Returns Rate  Leaders  Business Leaders  95  33  35%  123  30  24%  99  20  20%  117  54  46%  Teachers  124  61  49%  Sub-Total  558  198  35%  General Public  1,436  289  20%  Grand  1,944  487  24%  Municipal O f f i c i a l s Labour  Union  Chamber  o f Commerce P r e s i d e n t s  Total  Returned SPSS  Representatives  q u e s t i o n n a i r e s were c o d e d  (Statistical  programme  package.  Package f o r S o c i a l  and p r o c e s s e d u s i n g t h e S c i e n c e s ) computer  A l l the c r o s s - t a b u l a t i o n s necessary f o r  t h e a n a l y s i s were p r o d u c e d  by t h e same p a c k a g e  programme.  2 I t s h o u l d be n o t e d t h a t t h i s method a l m o s t a u t o m a t i c a l l y e x c l u d e d t h e n a t i v e p o p u l a t i o n as w e l l as t h e p e o p l e o f t h e lower income g r o u p who c o u l d n o t a f f o r d t o have.a t e l e p h o n e i n t h e i r dwelling.  17  2,5,  Genera,! C h a r a c t e r i s t i c s Random s a m p l i n g  criteria  used  of the Respondents  f r o m t e l e p h o n e d i r e c t o r i e s and  i n the s e l e c t i o n  of opinion  leaders resulted  a heavy c o n c e n t r a t i o n o f male r e s p o n d e n t s Consequently, s m a l l - 6% of  the percentage of female  of opinion  leaders,  t h e t o t a l sample.  p r e d o m i n a n t l y male The  age  The  11%  the  i n the  sample.  r e s p o n d e n t s was  extremely  of the g e n e r a l p u b l i c ,  survey r e s u l t s  in  and  admittedly r e f l e c t  opinions.  d i s t r i b u t i o n of respondents  i s shown i n T a b l e I I .  TABLE I I Age Age  15-19  20-24  Distribution 25-29  30-34  of  Respondents  35-49  50-59  60 and over  Total  Group Opinion Leaders  General Public  1  1  13  30  88  46  18  (0.5)  (0.5)  (6.6)  3 (1.1)  25 (8.9)  47 42 77 42 (16.8) (15.0) (27.5) (15.0),  Among o p i n i o n l e a d e r s , respondents  from the  general public  9%  group,  (15.2) (44.7) (23.4)  t h e r e was  (100%)  44 (15.7)  280 (100%)  a heavy c o n c e n t r a t i o n of  35-49 y e a r o l d g r o u p , t h e age  197  (9.1)  w h e r e a s among t h e  distribution is fairly  except f o r the l a c k of r e p r e s e n t a t i o n  from  even  t h e 15-19  year  age  group. In n a t i o n a l i t y , citizens while a further  94%  o f t h e r e s p o n d e n t s were  1.7%  l i v e d i n B.C.  Canadian  were l a n d e d i m m i g r a n t s .  two  p e r c e n t had  f o r more t h a n 9 y e a r s and  had  l i v e d i n the province a l l t h e i r  lives.  Eighty42%  18  The of  a n a l y s i s a l s o revealed that approximately  the respondents  education. indicated butable of  had  that this  to the  high l e v e l of education  subr-group o f  responding  which accounted university.  had  f o r 34%  Teachers  teachers. finished  of a l l the  a s i d e , the  sub-group to another.  other  completed a u n i v e r s i t y  However, a f u r t h e r breakdown among  teachers  one  (34%)  The  i s largely  Ninety-three  respondents  attri-  percent  education,  who  had  completed  e d u c a t i o n a l l e v e l v a r i e d from  modal e d u c a t i o n a l l e v e l  for  s u b - g r o u p s i s as f o l l o w s : Business Leaders Municipal O f f i c i a l s Labour Union R e p r e s e n t a t i v e s Chamber o f Commerce P r e s i d e n t s  Finished University Some U n i v e r s i t y F i n i s h e d Secondary Finished University  General  F i n i s h e d Secondary  Public  from v i r t u a l l y classified  a l l s e c t o r s of the  according  variety  of occupations  concentration  168  managerial  out  of  economy.  were r e p r e s e n t e d , category,  Classification a wide  t h e r e was  a  which c o u l d  t o the group of o p i n i o n l e a d e r s . 202  respondents  who  p o s i t i o n s came f r o m t h i s  In l o o k i n g a t f a c t o r s w h i c h necessary  T h e i r j o b s were  Here a g a i n , w h i l e  i n the managerial  a t t r i b u t e d mainly  r e s p o n d e n t s were i n c l u d e d  to the O c c u p a t i o n a l  M a n u a l , C e n s u s C a n a d a , 1971.  also  level  sub-groups  a university  In terms o f t h e i r o c c u p a t i o n s ,  fact,  one-third  to consider the  be  In  were c l a s s i f i e d  in  sub-sample.  influence opinion, i t i s  extent  e x p o s e d t o mass m e d i a i n f o r m a t i o n .  to which people  In t h i s  respect,  are  19  subscription a useful  basis  process. t o one  t o newspapers,  magazines  and  journals provides  f o r a p r e l i m i n a r y measurement o f t h i s  Eighty-eight  o r more l o c a l  percent of the respondents  newspapers,  while the  subscribed  proportions  s u b s c r i b i n g t o n a t i o n a l or i n t e r n a t i o n a l papers or were 42%  and  40%  respectively.  influence  magazines  When c o n s i d e r e d i n c o m b i n a t i o n  with respondents' length of r e s i d e n c e i n the p r o v i n c e , these figures  suggest t h a t the views  oriented  toward  relatively  provincial  s t a b l e consensus  Income l e v e l s group  to another.  household leaders,  originated  g r o u p , whose  forty  opinion. f r o m one  sub-  in levels  mean' income was  of  the C e n t r a l ,  Island,  North East of  7%  below  (32)  $12,000.  paralleled  among d e s i g n a t e d g e o g r a p h i c a r e a s o f percent of a l l responses, or  i n the G r e a t e r Vancouver  Thompson-Okanagan, 11%  Region,  including Victoria,  19%  (90) came  11.5%  (52) f r o m t h e K o o t e n a y s ,  f r o m t h e N o r t h West, and  189,  (55) 9%  3%  from  (45)  (14)  from  from  the  B.C.  Summary T h i s c h a p t e r has  used  represent a  source of returned questionnaires  well:  from Vancouver  2.5  be  o f whom e a r n e d more t h a n $25,0 00 a n n u a l l y , and  spatial  fairly  B.C.  of the respondents v a r i e d  population distributions B.C.  of l o c a l  and w o u l d  to  f o r example, between the-_gro.up o f b u s i n e s s  the g e n e r a l p u b l i c The  interests  T h e r e were marked d i f f e r e n c e s  income, 94%  e x p r e s s e d were l i k e l y  attempted  to describe  the  f o r the study, p r o v i d i n g data c o l l e c t i o n  methodology  and  processing  20  information, the  as w e l l as  the  characteristics  of  respondents. Chapter three w i l l  the  summarizing  survey,  between the  with  the  opinion  present  e m p h a s i s on leaders  the general the  g r o u p and  f i n d i n g s of  attitudinal differences the general  p u b l i c group.  21  CHAPTER  IIIX  GENERAL ATTITUDES TOWARD FOREIGN INVESTMENT AMONG B.C. RESIDENTS  3.1.  Introduction This  chapter presents thegeneral  findings  w i t h t h e e m p h a s i s on a t t i t u d i n a l d i f f e r e n c e s of  opinion  leaders  and t h e g e n e r a l p u b l i c  in  section  1.4, i t was e x p e c t e d t h a t  o f t h e survey,  between t h e g r o u p  group.  As mentioned  a discrepancy of opinions  w o u l d e x i s t b e t w e e n t h e s e two g r o u p s a s a r e s u l t o f d i f f e r i n g levels  o f awareness c o n c e r n i n g  centralized expected elites  foreign  investment.  The h i g h l y  n a t u r e o f F I d e c i s i o n - m a k i n g p r o c e s s was f u r t h e r  to create  opinion  v a r i a t i o n s between l o c a l  and p r o v i n c i a l b u s i n e s s l e a d e r s  exposed t o t h e g l o b a l  community  who a r e c o n s t a n t l y  movement a n d s t r a t e g i e s  of multinational  corporations. The identify  objectives  of this i n i t i a l  i n what a r e a s o p i n i o n  objectives, The  first  from t h e r e s p o n s e s . thequestionnaire  section  inquired  a prerequisite  second p o r t i o n and in  was d e s i g n e d  part  to  a n d (2) t o draw p o l i c y In order t o achieve the  consisted  o f t h r e e major  international trade  to discussion  preferences with respect thelast  (1)  sections:  i n t o t h e l e v e l o f B.C. r e s i d e n t s '  awareness o f t h e p r o v i n c e ' s as  are;  v a r i a t i o n s w o u l d e x i s t among  s u b - g r o u p s o f t h e B.C. p o p u l a t i o n , implications  analysis  of foreign  to obtain  relationships  i n v e s t m e n t . The  the people's  to foreign  investment  t h e emphasis s h i f t e d t o q u e s t i o n s  perceptions i n general; about  22  Japanese d i r e c t investment cultural  as w e l l  as  i n order to observe i f socio-  organizational  the  residents'  receptiveness  has  become one  of  3.2.  the  Awareness of  to  d i f f e r e n c e s would a f f e c t  investment  major i n v e s t o r s  from Japan  i n the  B.C.'s I n t e r n a t i o n a l  strong The  recent  forces  rapid  an  improved  e c o n o m i c and  host countries the  expansion of m u l t i n a t i o n a l  been b r o u g h t a b o u t by  ( s u c h as  national  inflows  business  and  t o B.C.  countries. the  the  of  t o be  foreign the  the  recent  the  assessment of  the  the  possessed residents  relationships  discussing  "What c o u n t r y ,  c l o s e s t trade  B r i t i s h Columbia?",  general  by  investment s i t u a t i o n .  partner  eighty-eight  of  apart  r e l a t i o n s h i p with  r e s p o n d e n t s named J a p a n , a f t e r t h e  and  However,  the  trade  posed b e f o r e  question,  trading  not  and  trends,  enterprise.  Whether o r  province's  important question  U.S.A., has  can  technological  province  s e c o n d most i m p o r t a n t leaders  the  favourable  b o t h home  this  province the  environments of  has  environmental  comparative advantage t h a t  In r e s p o n s e a t o  of  of  explained  awareness of  from the  corporations  best  closely following  become an  transactions.  be  over other regions  the  r e s o u r c e s have a  a combination  toward m u l t i n a t i o n a l s ) ,  capital  traditional  their  Relationships.  i n t e r - n a t i o n framework and  political  growth p r o c e s s of  foreign  are  Rim.  comparative advantage i n i n t e r n a t i o n a l trade  generally  and  Pacific  Trade  B r i t i s h Columbia's abundant n a t u r a l  which  percent  U.S.A., as  B.C.  Both  opinion  p u b l i c were i n a g r e e m e n t i n  importance of  Japan.  (Since  the  19 67,  their  ar  23  when J a p a n d i s p l a c e d t h e U n i t e d second l a r g e s t  t r a d i n g p a r t n e r , t r a d e b e t w e e n B.C. and  Japan has i n c r e a s e d s t e a d i l y , ) suggested  Kingdom a s t h e p r o v i n c e ' s  The r e s p o n s e s  question  t h a t a p e r c e p t i o n o f Japan as a growing t r a d i n g  p a r t n e r t o B.C. was g e n e r a l l y c l e a r people  to this  and a c c u r a t e among t h e  of the province. A  second q u e s t i o n concerned  f r o m B.C. and r e s p o n d e n t s  were a s k e d  importance,  f o r e i g n importers  The  appear i n T a b l e I I I .  results  the d i r e c t i o n of exports t o rank,  i n order o f  o f B.C. n a t u r a l r e s o u r c e s .  TABLE I I I Ranking o f Importers  Country Rank  Japan  U.S.A.  • 360^ ^ Hi5. 6)  0)  -P  ttS U  O  3' o o -H < Q  ~  (21.0) ' 10 (2.2) 3 (0.7) 2 (0.4)  o f B.C. N a t u r a l  U?K.  107 9 .(22.5) (1.9) 32V39 4 .(69.2)^^8.3) (0.9) * 3 8 ^ 323 ^ 48 (8.2) '"-C69.6)^^10.3) 7 9" "\ 2 9 8 ^ 1 (17.2) M 6 5 . 1 ) (0.2) 107 16 ( 2 3 . 4 ) (3.5)  N o t e : Rank 1 - M o s t i m p o r t a n t . Here a g a i n ,  the responses  t h e r e s i d e n t s were f a i r l y markets f o r the p r o v i n c e ' s order of importers  W.GERMANY  Resources  3 (0.6) 45 (9.7) 77 J16.8) 33 2 V (72.7*1  Figures i n brackets to this  well-informed  TOTAL RESPONSES  CHINA  question  476 (100) 468 (100) 464 (100) 458 (100) 457 (100)  a r e percentages,  indicated  that  r e g a r d i n g t h e major  natural resources.  o f B.C. n a t u r a l r e s o u r c e s  In 1 9 7 3 , the rank among c o u n t r i e s  24  listed  on  the  q u e s t i o n n a i r e was, f r o m t h e most  t h e U.S.A., J a p a n , t h e U n i t e d China of  (Statistics  Kingdom, West Germany  Canada, 1 9 7 4 ) .  the responses i n each case  "accurate" 3.3.  diagonal  perceptions  shown w i t h i n t h e d o t t e d  i n general  terms.  strength of  In o r d e r  and  to induce  Responding  some i n d i c a t i o n  to the  a ten-point  leaders  this  statement that  "there  i n v e s t e d i n B.C.," a d i v e r s i t y  i n Table  IV.  of  Between t h e s e  two  groups f e l l  g r o u p , and  Weighted s c o r e s  regarding general too  school teachers.  this  and  issue  p u b l i c g r o u p and  much.  the  p o l i t i c i a n s maintained (5.65  on  reactions  business representatives  inflows of f o r e i g n c a p i t a l  officials,  bureaucrats  f  preferences  The  statement, labour  o f commerce g r o u p , m u n i c i p a l  local  statements,  i s t o o much f o r e i g n  While p r o v i n c i a l  the view of e x c e s s i v e  province.  these  the  (strongly disagree).  s t r o n g l y opposed the  supported  of  s c a l e from l  emerged among a l l s u b - g r o u p s o f r e s p o n d e n t s . summarized  investment  b e e n a s k e d t o s p e c i f y f o r e a c h s t a t e m e n t where  ( s t r o n g l y a g r e e ) t o 10,  are  respondents'  incoming f o r e i g n  to obtain  answers would l i e a l o n g  c a p i t a l being  i n Table I I I .  General  the agreement o r d i s a g r e e m e n t w i t h  r e s p o n d e n t s had their  existing  o r more  t h e NW-SE  area  Investment i n  s t a t e m e n t s were d e s i g n e d  concerning  and  Sixty^-five percent  therefore lay along  A t t i t u d e s toward F o r e i g n Five direct  important,  a ten-point  the  local  general  in  chamber  public  indicated that their  neutrality  scale) while  a c a d e m i c s t h o u g h t t h e r e was  the  slightly  25  The that  first  hypothesis presented  a wide spectrum  g r o u p s o f t h e B,C. l e a d e r s and to the  i n section  o f p r e f e r e n c e s would e x i s t  population, with provincial  l a b o u r g r o u p s p r o v i d i n g two  i s s u e o f F I , was  r e v e a l e d v a r y i n g degrees  a f f i r m e d by  l,4 . s t a t i n g f  among v a r i o u s business  extreme p e r s p e c t i v e s  these responses.  The  result  o f s a t i s f a c t i o n w i t h F I among a l l  sub-groups. P o l a r i z a t i o n o f o p i n i o n s between b u s i n e s s g r o u p s came a c r o s s i n a d i s t i n c t way, throughout  the survey.  c r e a t e d by F I , t h e  Regardless  l a b o u r g r o u p was  i n the province, while business labour r e l a t i o n s h i p responses:  Strong  i n B.C.  l e a d e r s , F I was  o p p o s e d t o any  seems t o be  reflected  business dealings.  of  FI  Notorious  i n these  among u n i o n  r e a c t i o n s to F I .  To  represen-  union  economic i n v a s i o n  s e c t o r i s anxious  have a d i r e c t  form  l e a d e r s welcomed i t .  which only b e n e f i t s a handful of l a r g e business  more F I w h i c h w i l l  unchanged  of job o p p o r t u n i t i e s being  t h e m a n i f e s t a t i o n o f an  t h e o t h e r hand, t h e b u s i n e s s  labour  which remained  a n t i - b u s i n e s s sentiment  t a t i v e s were s u p e r i m p o s e d on  and  or i n d i r e c t  operators.  On  to r e c e i v e  impact  on  their  26  TABLE IV RESPONSES TO ISSUE "There  i s t o o much f o r e i g n c a p i t a l  Sub-Group  being invested  i n B.C."  % o f Sub-Group R e s p o n s e s Agree Disagree  Weighted Score  General  Public  59.7  40.3  4.91  Opinion  Leaders  49.7  50.3  5.95  12.1  87.9  8.91  58.0  42.0  5.65  73.7  26.3  3.53  Chamber o f Commerce Presidents  35.3  64.7  6.67  Teachers  51.6  48.4  4.60  Business  Leaders  Municipal • Labour  Officials  Union  Leaders  N o t e : A Z w e i g h t e d s c o r e was c a l c u l a t e d i n t h e f o l l o w i n g manner: E a c h a n s w e r was a s s i g n e d i t s s c a l e p o i n t v a l u e a n d t h e s e v a l u e s were t o t a l l e d f o r e a c h sub g r o u p . The sum was t h e n d i v i d e d b y t h e number o f r e s p o n s e s i n t h a t sub g r o u p t o g i v e a w e i g h t e d s c o r e r e p r e s e n t i n g s t r e n g t h o f p r e f e r e n c e . An i n d e f i n i t e s c o r e w o u l d be 5.50. G r e a t e r t h a n t h a t w o u l d be d i s a g r e e m e n t up t o 10.00; l e s s t h a n 5.50 w o u l d i n d i c a t e a g r e e m e n t , w i t h 1 i n d i c a t i n g the s t r o n g e s t agreement.  "B.C.  TABLE V RESPONSES TO ISSUE n e e d s more i n v e s t m e n t f r o m  Sub-Group  foreign  countries."  % o f Sub-Group R e s p o n s e s Agree Disagree  Weighted Score  General  Public  49.6  50. 4  5. 99  Opinion  Leaders  57. 5  42. 5  5. 15  84/9  15. 1  2. 79  51.6  48. 1  5. 34  25  75  8. 07  69.9  30. 2  4. 38  . 42.1  57. 8.  Business Municipal Labour  Leaders Officials  Union  Leaders  Chamber o f Commerce Presidents  .  6. 42  27  In a m a i l e d limitations  q u e s t i o n n a i r e method, one o f t h e m a j o r  i s t h a t no o p p o r t u n i t y e x i s t s  t h e g i v e n answer.  Although  a weighted  t o probe beyond  s c o r e measures  i n t e n s i t i e s o f p r e f e r e n c e s , a n s w e r s r e m a i n one In o r d e r  t o overcome t h i s  to prepare of  another  investment  trends  statement  o f thought  contradict situation  in  future  t h e reaction t o t h i s agreed  from f o r e i g n c o u n t r i e s . "  desirability which  some  second  statement.  t h a t "B.C. n e e d s  T h i s appeared t o  some o f t h e a t t i t u d e s t o w a r d t h e p r e s e n t indicated  earlier,  (See T a b l e  investment  where 56% o f t h e sample s t a t e d  " t h e r e i s t o o much f o r e i g n c a p i t a l  the province."  taken  t o be drawn.  three percent o f the respondents  more i n v e s t m e n t  that  concerning  were e x p e c t e d  dimensional.  a n a p p r o a c h was  from f o r e i g n c o u n t r i e s , through  Table V i l l u s t r a t e s Fifty  shortcoming,  relative  IV.)  already being  Twelve p e r c e n t  invested  of opinion  l e a d e r s and s i x t e e n p e r c e n t o f t h e g e n e r a l p u b l i c g r o u p were not c o n s i s t e n t i n t h e i r answers, a g r e e i n g the  statement  i n both  questions.  the assessment o f present the d e s i r a b i l i t y  few  d i f f e r e n t ways: Some p e o p l e  m i g h t have c o n s i d e r e d t h e  f o r e i g n investment  ened b y r e d i r e c t i o n o f i n v e s t m e n t  amount o f F I a t p r e s e n t ,  has  relied  c o u l d be  less-  patterns i n the future.  m i g h t have t h o u g h t  Historically,  inflows  o f f u t u r e F I c o u l d be i n t e r p r e t e d i n a  d i s s a t i s f a c t i o n with  some r e s p o n d e n t s  with  T h i s i n c o n s i s t e n c y between  levels of foreign capital  and  present  or disagreeing  t h e r e was n o t a n  Or  excess  y e t t h e y d i d n o t want a n y f u t u r e F I .  B r i t i s h Columbia's economic  development  on s u c c e s s i v e i n f l o w s o f f o r e i g n c a p i t a l  to finance  28  such  development.  B.C.  people  I t was  regarding  felt  this  fact  Consideration  was  given  evaluation  the  contribution  ment  and  of  the  benefits  might  differ.  investment  ment  the  improved  of  social the  Eighty  is  has  to or  majority  of  general  public  of  state  the  economic  the  improved agreement  to  q u a l i t y of the  economic  appreciation  the  develop-  of  statements  i t s  general,  economic  develop-  B.C.") w e r e  included  residents  net  ("In  development  has to  regarding  effects created  respondents  agreed  economic  leaders  group  the  and  as  a  c  economic  result  and  eighty  supported B.C.  that  the  foreign  in  seven  B.C.  per-  statement.  residents of  foreign  development  o f t h e s t a t e m e n t was the  improvement  associate  decreased  respondents  from  B.C.  objective  investment  i n general  could  responses  the  that  "Foreign  B.C.  opinion  emphasis  people  of  in  of  are  It  fully  inputs  to  the  structure.  development  favourable  and  positive ramifications  economic  which  79%  that  to  two  b e n e f i c i a l to  the to  FI  awareness  capital.  of  of  of  of  established.  possibility  negative  foreign  been  be  o v e r a l l economic  percent  When  terms  FI  of  vast  provincial  (with  of  of  four  safe  aware  life  benefits  investment  cent  q u a l i t y of perception  level  b e n e f i c i a l to  B.C."  inflow The  been  of  the  contribution and  the  should  Therefore,  has  Province  the  determine  to  the  individuals' subjective  foreign in  that  general  that  be  decreased  from  q u a l i t y of  life  more  Although  foreign  i t should  public  the  own  slightly.  agreed life,  their  of  shifted  closely);  in overall  investment  noted to  that  77%,  life  a  has  the 10%  29  drop from the almost the positive  responses to the previous  same number o f o p i n i o n  support  for this  leaders  statement.  general  question, (83%)  The  while  showed  results  clearly  indicated  t h a t the  bution of  f o r e i g n i n v e s t m e n t t o economic development b u t  c5f them d r o p p e d t h e i r the  enhancement o f t h e  realized with  previous  to t h e i r In o r d e r  EI  to  support  q u a l i t y of  expectations  asking  the  i n the  improvement o f t h e  effects  responses.  dents perceived  of  coincide  province,  areas  of F I .  the  life  Tables of  One-third  coupled  with  the  fact  predominantly  of  benefits  i n terms of ( s u c h as  VI  s e r v i c e s and  amenities).  to  the  IX  responincreased  them b e l i e v e d These  effects  were  i n monetary terms, suggest  economic b e n e f i t s r a t h e r t h a n  increased  further  observe  i n income l e v e l s .  that negative  question  was  people  respondents a s s o c i a t e f o r e i g n investment with life  could  residents related  the major c o n t r i b u t i o n i n terms o f  that FI contributed to increases  the  B.C.  Almost two-thirds  employment o p p o r t u n i t i e s .  also perceived  ra  T h e y must have  q u a l i t y of  i n what p a r t i c u l a r  c o n t r i b u t i o n s or negative illustrate  some  i t s c o n t r i b u t i o n to  o f what d e v e l o p m e n t  t o b e t t e r u n d e r s t a n d how  the  e x t e n d e d by  results,  life.  contri-  region.  socio-economic c o n d i t i o n s  concerning  local  i n terms o f  the  t h a t t h e outcome o f d e v e l o p m e n t d i d n o t  their  bring  public highly valued  the  availability  that  the q u a l i t y social  o f goods o r  improved  30  The benefits low  lead to  of  strong  several  d e s i r a b i l i t y of  First, by  perception  a s s o c i a t i o n of FI with  i n t e r p r e t a t i o n s f o r the  future FI  e x p r e s s e d by  t h e y m i g h t have t h o u g h t t h a t  F I were n o t  ment p a t t e r n .  the  secured  distributed equitably  respondents:  under the  generated  current  invest-  Second, B r i t i s h Columbians' development  p e o p l e d i d n o t want any  t h e i r own  indirectly  generally  economic b e n e f i t s  have b e e n c h a n g i n g w i t h more e m p h a s i s on Third,  the  economic  the  simply  criteria.  because they  j o b s , w h i c h m i g h t have b e e n d i r e c t l y  r e s u l t o f F I , and  from a s t r i c t l y  FI  non^economic  goals  thus they p e r c e i v e d  i n d i v i d u a l welfare  t h e y had  already  benefited  want any  more F I w h i c h w o u l d n o t  viewpoint.  from p a s t  FI  or  the  issue  In o t h e r  projects  and  had  words,  did  bring'any d i r e c t b e n e f i t  not to  them. Policy  Implications:  The  t h a t unequal d i s t r i b u t i o n of affected The of  i n t e r p r e t a t i o n suggests  benefits accruing  to f u t u r e FI  from F I  among t h o s e n o t  s e c o n d i n t e r p r e t a t i o n i s b a s e d on  the  preference  p o s t ^ i n d u s t r i a l s o c i e t y where p e o p l e w i s h t o l i v e  social If  receptiveness  first  this  amenities are i s the  rather  than being  case, a changing p a t t e r n  d e v e l o p m e n t o b j e c t i v e s was  s u g g e s t e d by  economically of the  B.C.  adversely  benefiting. pattern where rational.  residents'  result.  31  TABLE VI Nature  of  ^ r - ^ U r ^ r i  C o n t r i b u t i o n s o f For  P. i o n  Investment i n B.C. Percentage of T o t a l Sample  No. o f Responses Employment o p p o r t u n i t i e s f o r . l o c a l communities  303  63%  161  34%  I n c r e a s e d goods/commodities a v a i l a b l e  96  20%  Improved  78  16%  19  4%  Increased  Incomes services/Amenities  Other TABLE V I I  Nature o f P e r c e i v e d C o n t r i b u t i o n s - Sub-Group — (row p e r c e n t a g e s i n b r a c k e t s ) B u s i n e s s M u n i c i p a l Union leaders o f f i c i a l s leaders  Chamber of Commerce  Responses  Teachers General T o t a l  Employment opportunities for local communities  28 (9.2)  22 (7.2)  8 (2.6)  42 (13.9)  . 34 (11.2)  169 (55.8)  303 (100%)  Increased Incomes  23 (14.3)  13 (8.1)  5 (3 .1)  16 (9.9)  25 (15.5)  79 (49.1)  161 (100%)  7 (7-3)  3 (3.1)  11 (11.5)  14 (14,6)  55 (57.3)  96 (100%)  (1.3)  (11.5)  ]2 (15.4)  42 (53.8)  78 (100%)  2 (10.5)  (5.2)  (15.8)  3 (15.8)  9 (47.4)  19 (100%)  51 (7.8)  18 (2.7)  81 (12.3)  88 (13.4)  354 (53.9)  657 (100%)  Increased Goods/ Commodities 6 available (6.2) Improved Services/ amenities  7 (9.0)  Others  1 (5.3)  Totals  65 (9.9)  7 (9.0)  32  TABLE V I I I Nature o f P e r c e i v e d N e g a t i v e E f f e c t s o f F o r e i g n Investment No. o f Responses  I n s u f f i c i e n t r e t u r n t o B.C. from e x p l o i t a t i o n of n a t u r a l resources  i n B.C.  Percentage of T o t a l Sample  70  15%  Removal o f p r o f i t s / e a r n i n g s from B.C.  48  10%  Environmental p o l l u t i o n  40  8%  Overconcentration of population  17  4%  D i s r u p t i o n o f l o c a l communities  11  2%  9  2%  Others  TABLE IX Nature o f P e r c e i v e d N e g a t i v e E f f e c t s - Sub-Group Business Municipal leaders officials Population concentration Insufficient r e t u r n s to B.C. Removal o f P r o f i t s from B.C. Environmental Pollution Disruption of l o c a l communities Others  Totals  1 (5.9)  1 (5.9)  2 (2.9)  2 (2.9)  1 (2.1)  2 (4.2)  responses  Union Chamber T e a c h e r s G e n e r a l T o t a l Leaders of Public Commerce -  1 (5.9)  4 (23.5)  10 (58.8)  17 (100%)  6 (8.6)  3 (4.2)  11 (15.7)  46 (65.7)  70 (100%)  5 (10.4)  3 (6.3)  8 (16.6)  29 (60.4)  48 (100%T  2 (5.0)  -  4 (10.0)  1 (2.5)  7 (17.5)  26 (65.0)  40 (100%)  1 (9.1)  -  1 (9.1)  2 (18.2)  1 (9.1)  6 (54.5)  11 (100%)  (22.2)  1 2 (11.1) (22.2)  3 (33.4)  9 (100%)  11 (5.6)  120 (61.5)  195 (100%)  -  7 (3.6)  1 2 (11.1) 6 (3.1)  18 (9.2)  33 (16.9)  33  3.4.  A t t i t u d e s : Toward J a p a n e s e D i r e c t Ever  s i n c e t h e mid-1960's when J a p a n e s e b u s i n e s s  started to invest to  i n B.C.  secure a steady  b a s e , J a p a n has  (particularly  natural resource  s u p p l y o f raw  British)  designed  concerning  this  investments.  to s o l i c i t  growing  Japanese investment between C a n a d i a n and  considered  to a f f e c t  a d v e r s e l y t h e B.C.  a l s o demonstrated t h a t the  If this  o f W o r l d War  "myth" o r t h e  increasing  decade,  people's  historical  been was  Columbia  environment, h a d - n o t  background,  I I , i s coupled with  an  "myth"  preferences  h i s t o r y of B r i t i s h  societal  The  origin  including  the a f o r e -  of  present  e x p l a n a t i o n f o r some l a c k o f  emerges.  Duval's  cautious posture headquarters  Rim.  w h i c h has  lack of understanding  Japanese economic s t r u c t u r e ,  the  residents  f a v o u r a b l e to e t h n i c groups of A s i a n  recent years.  As  part of  operations.  i n the l a s t  The  European  organizational differences  strategies,,  world  toward Japanese investment.  receptiveness  and  Japanese business  i n the western  mentioned  latter  and  t h e o p i n i o n s o f B.C.  were c u l t u r a l  prevailing  the experience  The  i n order  option"  to high receptiveness to  of a g r e s s i v e Japanese business  until  "a t h i r d  i n v e s t o r i n the P a c i f i c  major b a r r i e r s  been n e c e s s a r i l y  as  sector  industrial  B.C.'s h e a v y d e p e n d e n c e on U.S.  s u r v e y was  has  industries  m a t e r i a l s f o r her  been f r e q u e n t l y c i t e d  to c o u n t e r b a l a n c e  The  Investment  (1974) r e s e a r c h r e v e a l e d , t h e  extremely  o f J a p a n e s e m u l t i n a t i o n a l s , whose  local  a r e l o c a t e d i n m e t r o p o l i t a n V a n c o u v e r , and  their  34  efforts  to assimilate  clearly  reflect  conflicts  i n t o Canadian business s t r u c t u r e  the Japanese m u l t i n a t i o n a l ' s  fear of potential  and c o n f r o n t a t i o n s w i t h t h e C a n a d i a n  society.  However, n e i t h e r C a n a d i a n s who a d v o c a t e d t h e p o l i c y o f "Japan as t h e t h i r d investors reveal out  have  societal  f o r B r i t i s h Columbia  u n d e r t a k e n any s o c i a l  to rely  t h e arguments heavily  would  investment. With^  or strategies  they  ;  on r o o t l e s s a s s u m p t i o n s .  s u r v e y was c o n d u c t e d , t h e f e a s i b i l i t y  a steel mill  nor Japanese  r e s e a r c h which  e x p e c t a t i o n s toward Japanese  such i n f o r m a t i o n ,  d e v e l o p have this  option"  could When  study of e s t a b l i s h i n g  i n B r i t i s h C o l u m b i a was underway between t h e  NDP g o v e r n m e n t  a n d N i p p o n Kokan K.K., one o f t h e m a j o r  iron  and s t e e l m a n u f a c t u r e r s i n J a p a n , and t h e c o n t r o v e r s y o f " f o r whom i t w i l l  be b u i l t ? "  o f t e n a p p e a r e d i n t h e mass m e d i a .  Therefore  i t was f e l t  appraisal  o f people's p e r c e p t i o n o f Japanese  its  i m p a c t on t h e i r This  t o be t h e r i g h t  local  time t o conduct such an i n v e s t m e n t and  environment.  s e c t i o n o f t h e s u r v e y was i n t e n d e d  o b s e r v e whether  t h e B.C. p o p u l a t i o n  f i r s t l y to  possessed s u f f i c i e n t  l e d g e about p r e s e n t Japanese economic  conditions  business operations  After  establishing  i n the province.  the levels  o f awareness  and J a p a n e s e  i d e n t i f y i n g and  among t h e p o p u l a t i o n ,  t h e p a t t e r n o f p r e f e r e n c e s by a l l sub-groups w i t h r e s p e c t to future d e s i r a b i l i t y discussed.  o f Japanese  know-  investment w i l l  be  35  Knowledge A b o u t P r e s e n t Day Japa,n:  v  included  t o s e e how- w e l l  i n Japan,  people  w h i c h have l e a d  understood  were  economic c o n d i t i o n s  t h e c o u n t r y t o become a m a j o r  c u s t o m e r o f B.C. n a t u r a l r e s o u r c e s . respondents  Two s t a t e m e n t s  were aware o f t h e f a c t  Ninety nine percent of t h a t J a p a n d o e s n o t have  an a d e q u a t e s u p p l y o f n a t u r a l r e s o u r c e s t o f e e d h e r l a r g e industrial one  base.  E i g h t y n i n e p e r c e n t r e c o g n i z e d Japan as  o f t h e most i n d u s t r i a l i z e d  world.  Among t h e r e m a i n i n g  respondents,  J a p a n had b e e n i n d u s t r i a l i z e d "recently"  and u r b a n i z e d n a t i o n s i n t h e  recently,  to the past t h i r t y These r e s u l t s understanding  level  interpreted  to other  c o u n t r y was  their  limited  years. suggest  t h a t r e s i d e n t s have a b a s i c  o f Japan's economic  t o be s e r i o u s l y that  some  that  t o mean t h e postr-World War I I p e r i o d , s o t h a t  awareness o f Japan as an i n d u s t r i a l i z e d  responses  who s u g g e s t e d  statements  s t r u c t u r e and t h a t  their  and q u e s t i o n s were n o t l i k e l y  c o n f u s e d by m i s t a k e n  i d e a s a n d images o f  country. Awareness o f Japanese B u s i n e s s  Involvement  i n B.C.: The  o f a w a r e n e s s and u n d e r s t a n d i n g  of existing  foreign  investment  i n the respondent!s  indicator  of opinion.  establish  B.C. p e o p l e ' s  own r e g i o n i s a n  Questions levels  e x i s t e n c e o f Japanese business communities o r i n the p r o v i n c e .  were d e s i g n e d  important t o s e e k and  o f awareness c o n c e r n i n g t h e involvement i n t h e i r  local  36  S i x t y one business of such  percent  activities activities  Japanese business respondents,  who  of respondents  i n t h e i r own  gave a t l e a s t  t o t h o s e who  one  are in  i n answering  i n B.C.  summarized  economy.  From t h e p e o p l e who  highly  the n e u t r a l p o s i t i o n ,  checked  the question,  i n T a b l e X.  one  the  manufacturing  absorb  "In which  fields  i n v o l v e d ? " The  results  Respondents' p e r c e p t i o n s ,  indicated  w i t h the degree of a c t u a l  capital  first  B.C.  f o u r s e c t o r s of the rank  p r o d u c t s , p u l p and  almost  the  o r a number  by J a p a n e s e f i r m s i n e a c h s e c t o r o f t h e In f a c t ,  business  favourable.  i s Japanese c a p i t a l  mineral resources, forest  British  favourable  (474)  t h i s Table, corresponded  investment  241  i m p r e s s i o n , had  predominantly  Almost a l l respondents  of business  the  d e d i c a t e d nature of Japanese  maintained  g e n e r a l c o n s e n s u s was  industries  In commenting on  community, n i n e t y f o u r p e r c e n t o f  v a l u e d the hard-working,  of  Japanese  community, o r were aware  i n the p r o v i n c e ,  or a t l e a s t n e u t r a l r e a c t i o n s ,  people  recognized  paper,  a l l Japanese investment  order;  and in  Columbia.  Thirty  p e r c e n t , o r 135,  of the respondents  mentioned  s i g n i f i c a n t o r g a n i z a t i o n a l d i f f e r e n c e s between J a p a n e s e Canadian business possessed and  corporations.  Sixty  four percent of  and them  f a v o u r a b l e o p i n i o n s toward Japanese c o r p o r a t i o n s ,  another  twenty p e r c e n t  Many f a v o u r a b l e r e s p o n s e s  expressed  neutral observations.  were r e l a t e d  to Japanese  employee r e l a t i o n s h i p s w h i c h a r e o f t e n d e s c r i b e d as  employerpaternalistic.  37  This p a r t i c u l a r  characteristic  w h i c h ma,de t h e J a p a n e s e s o c i a l industrialized residents."*" as w e l l as  n a t i o n s was  The  responses to questions  i n the  previous  relations  s t r u c t u r e so u n i q u e among  w e l l u n d e r s t o o d by  sub^-section  r e s p o n d e n t s were r e p r e s e n t i n g B.C.  of Japanese labour  the  in this confirmed  a well-informed  B.C.  subrsection that  group i n  the  population,  TABLE X Respondents' P e r c e p t i o n s C a p i t a l i s Involved.  o f B.C.  I n d u s t r i e s i n which  Industry  Mineral  No. o f Responses  resources  Japanese  Percent of t o t a l respondents (474)  427  90.1  56  11.8  Products  300  63.3  Paper  282  59.5  141  29.7  151  32.1  Agriculture  37  7.8  Tourism  55  11.6  Supermarketing/Retailing  37  7.8  Transportation  94  19.8  Others  27  5.6  P e t r o l e u m and Forest Pulp  and  Banking,  natural  insurance  gas  and  Manufacturing  real  estate  Recent b u s i n e s s r e p o r t s r e v e a l e d t h a t the nature of p a t e r n a l i s m has gone t h r o u g h d r a s t i c c h a n g e s , m a i n l y due t o t h e e c o n o m i c slump t h a t J a p a n has b e e n e x p e r i e n c i n g .  38  P r e s e n t and F u t u r e J a p a n e s e I n v e s t m e n t i n B.C.: F i v e attitudinal B.C. of  statements concerning  were t e s t e d .  Japanese Investment i n  The e m p h a s i s was p l a c e d  on t h e p r o v i s i o n  employment, w h i c h a p p e a r e d t o be most d i r e c t l y  w i t h c o n c e r n s among t h e p o p u l a c e r e g a r d i n g political  r e m i f i c a t i o n s o f F I were  Eighty percent  s i x percent  o f the general  supporting  supporters  direct  of t h i s  that  or indirect  employment  leaders,  teachers  s t a t e m e n t , w i t h 93%  shifted  leaders  to speculation  opportunities.  and 78% o f t h e g e n e r a l  public  local  describing past  prospects  were s l i g h t l y  from a l l sub-groups s t i l l  supported  "Japanese investment w i l l  increase  the future."  I t i s worth noting  concerning  that  those  of respondents  the statement local  8 2%  thought  lower than  benefits, the vast majority  future  employment  Although the p o s i t i v e responses  future  about  by J a p a n e s e i n v e s t m e n t ,  t h a t Japanese investment would i n c r e a s e  in  and e i g h t y  Among o p i n i o n  employment w h i c h may be c r e a t e d  potential  s o c i a l and  t h e statement.  When t h e e m p h a s i s s w a s  of opinion  leaders  p u b l i c r e s p e c t i v e l y agreed  i n the province.  were t h e s t r o n g e s t  FI,also  considered.  of opinion  Japanese i n v e s t m e n t has i n c r e a s e d opportunities  associated  that  employment there  was  opportunities little  d e v i a t i o n between s u b - g r o u p s i n t h i s o p i n i o n . -;-even t h e r e g u l a r l y o b s e r v e d p o l a r i z a t i o n o f v i e w s between b u s i n e s s and u n i o n leaders  was weaker i n p r e d i c t i n g t h e i n c r e a s e d  opportunities The  w h i c h would be g e n e r a t e d  r e s u l t s a r e summarized  i n Table XI.  employment  from Japanese  investment.  39  TABLE XI RESPONSES TO ISSUE "Japanese investment w i l l i n c r e a s e l o c a l employment o p p o r t u n i t i e s i n the f u t u r e " .  Sub^Group  Opinion  % o f Sub-Group Responses Disagree Agree  leaders  Business  leaders  Municipal  Officials  Union Leaders  82.1%  17.9%  . 3.71  8778%  12.2%  2.79  87.1%  12.9%  3.26  73.8%  26.2%  4.74  20.4%  3.70  81.4%  18.6% •  4.15  78.3%  21.7%  4.04  Chamber o f Commerce Presidents79.6% Teachers General  Public  Weighted Score  However, these f i g u r e s should not be n e c e s s a r i l y i n t e r p r e t e d as " f a v o u r a b l e " consensus s i n c e the nature o f the statement was h i g h l y o b j e c t i v e .  As one respondent commented,  "one can o n l y answer the q u e s t i o n s Therefore,  i n the way t h a t was d i r e c t e d . "  some o f the respondents who agreed with the statement  may n o t possess p o s i t i v e e x p e c t a t i o n toward the i n c r e a s e d employment o p p o r t u n i t i e s by Japanese investment.  I t could at  l e a s t be s a i d t h a t the m a j o r i t y of B.C. r e s i d e n t s p r e d i c t e d i n c r e a s i n g l o c a l employment o p p o r t u n i t i e s i f investment from Japan continues  t o flow i n t o B r i t i s h Columbia.  One o f the major problems c o n f r o n t i n g f o r e i g n i n v e s t o r s i n any host r e g i o n i s p o t e n t i a l p o l i t i c a l and s o c i a l friction.  S i x t y - s e v e n percent o f o p i n i o n l e a d e r s and 71% o f  40  the  general  friction again only 90%  felt  that  there  w o u l d be some  c a u s e d by Japanese i n v e s t m e n t .  49% o f b u s i n e s s  Two e x t r e m e s were  leaders  predicted  political  o f union l e a d e r s predicted/the p o s s i b i l i t y  residents  friction  appeared  t h a n was p o l i t i c a l  respondents p r e d i c t e d  likely  cause s o c i a l  groups  showed t h a t  general  friction.  aspect  leaders  and 62% o f t h e friction.  The  p u b l i c g r o u p i s more  o f i n v e s t m e n t f r o m J a p a n t h a n was  leaders.  that  would  Breakdown between  Among o p i n i o n  leaders,  were most s e n s i t i v e t o w a r d t h e i s s u e  sub-group c o n s i d e r e d  problems.  J u s t over h a l f of  p u b l i c a n t i c i p a t e d some k i n d o f s o c i a l  group o f o p i n i o n  teachers  o f such  i n the future.  47% o f o p i n i o n  concerned over t h i s  friction,  that Japanese investment  friction  While  t o be o f l e s s c o n c e r n t o t h e  above f i g u r e s i n d i c a t e t h a t t h e g e n e r a l  the  political  o b s e r v e d between b u s i n e s s and u n i o n l e a d e r s :  Social  the  public  some s o c i a l  and 6 3%  friction  of this  was l i k e l y t o  arise. One o f t h e r e a s o n s why many B.C. r e s i d e n t s foresee  major s o c i a l  frictions  as a r e s u l t  d i d not  of increasing  J a p a n e s e i n v e s t m e n t was i n d i c a t e d i n a comment f r o m o n e respondent: (2-3  "The J a p a n e s e community  years residence)  racists  a n d t h e y do n o t p r e s e n t  or p o l i t i c i a n s .  (This observation  i s largely transient  Their  i s accurate  presence  is  a target f o r  unobtrusive."  i n t h a t most J a p a n e s e  communities abroad a r e t r a n s i e n t  i n n a t u r e , due t o  p e r s o n n e l changes i n j o b r o t a t i o n .  business frequent  F u r t h e r m o r e , most o f  41  Japanese firms not  to c r e a t e  operating any  whenever a new  i n B.C.  social  racial  I n commenting on  disturbance  o v e r any  as  o f B.C.  the  which i s l i k e l y  potential social  political  the  and  The  to  occur  society.) friction,  a p r e r e q u i s i t e to  majority  c o n s e n s u s was  i n v e s t m e n t p o l i c y i s f i r m and likely  cautious  n e c e s s i t y of r e t a i n i n g Canadian  i n v e s t m e n t p r o j e c t as  residents,  extremely  in a  minimize these f r i c t i o n s , long  t o be  factor i s introduced  some r e s p o n d e n t s e x p r e s s e d control  tend  friction  government r o l e of r e g u l a t i n g F I  i n the  that  best i n t e r e s t  w o u l d be m i n i m i z e d .  and  providing  t o g u i d e f o r e i g n i n v e s t m e n t d e c i s i o n was  as  a  A  framework  e x p e c t e d by a l l  sub-groups. The  final  statement analyzed  designed to explore possible  linkages  perceptions  between t h e  Japanese i n v e s t o r s . and  eighty  firms  percent  i n B.C.  of  in this B.C.  the  regarding  p r o v i n c i a l government  general  were more l i k e l y  was  residents  Seventy four percent of  section  and  of opinion  public stated  leaders  that  to cooperate with  Japanese  the p r o v i n c i a l  g o v e r n m e n t t h a n were t h e i r C a n a d i a n c o u n t e r p a r t s .  Japanese  c o m p a n i e s were known t o have c l o s e r e l a t i o n s h i p s w i t h own  government i n o r d e r  effective  operations.  were more l i k e l y  I t was  to cooperate  l o c a l g o v e r n m e n t i n any t h e i r corporate  to minimize c o n f l i c t  goals.  and  to  expected, t h e r e f o r e ,  facilitate that  i n s i m i l a r manner w i t h  f o r e i g n environment  so as  their  to  they  the attain  42  Although Japanese  f i r m s were l i k e l y  provincial did  the m a j o r i t y of respondents  w i t h the l o c a l political  companies,  organizations'  g o v e r n m e n t as a p o s i t i v e  friction,  Many p e o p l e  tors  after  stressed that  the l a t t e r  the f u t u r e  indicator  in this  i n d u s t r i e s and  that  expressed  not d e s i r a b l e .  ences .  .  to  was of  c l i m a t e i n the p r o v i n c e . i n terms o f  suitable  i n manufacturing i n B.C.  Apart  no o t h e r  i n v e s t m e n t w o u l d be  unlimited  related  ensure  this  Japanese  sub-groups  unwelcome.  participation  Between t h e s e e x t r e m e p o s i t i o n s ,  were i n v e r s e l y  inves-  for definition  a sub-group o f union r e p r e s e n t a t i v e s ,  They a l s o  the  They  hands and  natural resource industries  Japanese  was  i n Canadian  participation  c o n s i d e r e d t h a t any  power.  government r e g u l a t i o n s  f o r c o n t r o l over FI i n d i c a t e d  of f u t u r e Japanese  minimize  of f o r e i g n  gained c o n t r o l l i n g  investment  to  investment,  the a t t i t u d e s  remains  they  sample r a i s e d  important c o n s i d e r a t i o n  foreign  Concern  from  control  s e e n as an  levels  had  t h e need f o r s t r i c t  effective  clearly  concern over  the  cooperative nature  q u e s t i o n o f government c o n t r o l o v e r f o r e i g n expressing t h e i r  that  t o Be more c o o p e r a t i v e w i t h  g o v e r n m e n t t h a n were C a n a d i a n  not p e r c e i v e Japanese  expected  to the proposed  l e v e l of  preferforeign  2  participation. u n i o n l e a d e r s was  Regular p o l a r i t y again observed  between t h e in their  business  responses:  and  While  2 T h i s i n v e r s e r e l a t i o n s h i p was e v e n more s t r o n g l y i n d i c a t e d f o r the case of Japanese involvement i n the province's n a t u r a l resource i n d u s t r i e s than i n manufacturing.  43  business  l e a d e r s p r e f e r r e d 5.0%5.0% J a p a n e s e p a r t i c i p a t i o n t o  Japanese minority- position,, union the  strongest support  manufacturing The  f o r no J a p a n e s e i n v e s t m e n t  and n a t u r a l r e s o u r c e  results  i n this  n e g a t i v e assumption B.C.  r e p r e s e n t a t i v e s expressed  industries.  s e c t i o n almost  entirely  in  r e s i d e n t s t o Japanese investment.  favourable impressions  their  communities  organizational as  expected  reversed the  made w i t h r e s p e c t t o r e c e p t i v e n e s s o f The f a c t  k n o w l e d g e a b o u t p r e s e n t J a p a n was s u f f i c i e n t l y with  i n both  that  their  accurate,  g i v e n t o Japanese business  indicated  that cultural  coupled  people  as w e l l as  d i f f e r e n c e s were n o t a s g r e a t o f a  t o r e c e p t i v e n e s s o f t h e B.C. p e o p l e  hindrance  t o Japanese  investment. The the  fact  t h a t the respondents  future social  further  friction  confirmed  were l e s s  than with p o l i t i c a l  concerned  with  friction  that socio^cultural differences  between  h o s t - i n v e s t i n g c o u n t r i e s s h o u l d n o t be o v e r l y emphasized i n the  future.  I f the s o c i a l  as one r e s p o n d e n t  acceptance  stated, the societal  o f Japanese i s a  fact,  environment f o r  J a p a n e s e b u s i n e s s w o u l d n o t be n e g a t i v e a s l o n g a s t h e investors  f o l l o w t h e g u i d e l i n e s which both  government would  3.5.  levels of  provide.  Summary and C o n c l u s i o n This chapter  opinion  presented  the general findings  s u r v e y w h i c h was d e s i g n e d  from t h e  to e s t a b l i s h the l e v e l of  a w a r e n e s s and p r e f e r e n c e p a t t e r n s o f t h e B.C. p o p u l a t i o n  44  concerning created  FI  the  i n the p r o v i n c e .  impression  informed  concerning  Although  the  that  likely  t o be  of accurate The  the  who  the  respond,  to d i s c o u n t f o r the  s h o u l d be  t o B.C.'s i n t e r n a t i o n a l  respondents'  that their  high  survey.  responses  rationality.  mation or  policy  . -  or As  i n the  was  expect  issues with  rest of  expected,  f o r m e d two  hypothesis  approach  (Chapter  in their  high  level  relation-  local  concerning communities  statements  were  and  p u b l i c debate  and  r e s p e c t t o new to c o n t r o l  proposals  foreign  this  and  investment  Canada.  a wide spectrum of p r e f e r e n c e s sample.  The  circle  classical and  labour  appeared  tendency repeatedly  extreme p o l e s o f p r e f e r e n c e s .  presented  from  the p r o v i n c i a l  reasonable  o f p o l a r i z a t i o n between b u s i n e s s  first  i s s u e were  k n o w l e d g e were h a r d l y d e t e c t e d  among a l l s u b - g r o u p s i n t h e  a p p e a r e d and  probability  trade  to a t t i t u d i n a l  recommendations d e s i g n e d  B.C.  investment.  l e v e l o f awareness  i n d i c a t e s t h a t both  f e d e r a l governments can a p p r e c i a t i o n of the  well-  P r e j u d i c e d o p i n i o n s b a s e d on m a l - i n f o r -  l a c k of proper This result  i n the  survey  stressed.  e x i s t e n c e of Japanese investment  b a s e d on  to f o r e i g n  the m a j o r i t y of respondents'  perceptions  the  confirmed  in  issues related  from the  were aware and  were more i n t e r e s t e d  responses  s h i p s , and  that respondents  r e s e a r c h e r s had  the people  Overall results  The  i n the demographic c r o s s - s e c t i o n a l  I , S e c t i o n 4.)was a f f i r m e d . The  typical  45  p r e f e r e n c e p a t t e r n among s u b - g r o u p s was the  statement  provincial people  regarding the d e s i r a b i l i t y  business  the general p u b l i c  and  l e a d e r s and  local  provided favourable reactions,  position. union  typical  On  group maintained  the other aide of the  leaders.  response  The  p a t t e r n from  Toward F u t u r e  Investment  I t was  apparent  butions of FI both  from  spectrum  neutral  were t e a c h e r s  illustrates  from F o r e i g n C o u n t r i e s  Unfavourable  Strongly Unfavourable  r e a c t i o n s to  i n e c o n o m i c d e v e l o p m e n t and that  Union Representatives  contri-  to the  enhance-  t h e y a s s o c i a t e d F I most If this  p e r c e p t i o n was  the  of the r e c e p t i v i t y d i f f e r e n c e s d e s c r i b e d i n the  above diagram, beneficiaries  the  3  s t r o n g l y w i t h economic c r i t e r i a . cause  and  a l l sub-groups.  the people's  ment o f t h e q u a l i t y o f l i f e  local  bureaucrats  a somewhat  Strongly Favourable: N e u t r a l Favourable!  and  local  While  commerce  Local General Teachers Local Chamber o f B u r e a u c r a t s P u b l i c Commerce  Provincial Business Leaders  in  of future F I :  chamber o f  f o l l o w i n g diagram  FIGURE  direct  identified  i t i s not d i f f i c u l t o f F I were m o s t l y  business groups.  to conclude  that  concentrated i n both  In view o f  income  the  past  provincial  redistribution  g o a l s w i t h i n t h e p r o v i n c e , t h e p o l i c y makers have t o c o n s i d e r this buted  r e l a t i o n s h i p between t h e r e c e p t i v i t y b e n e f i t s generated  from F I  so t h a t  t o F I and future  distri-  legislation  46  or  policy- toward  expressed The fixed that  of  initial  d i s c r e p a n c y o f o p i n i o n s , however, i s n o t comments e x p r e s s e d by r e s p o n d e n t s  so l o n g a s an a c c e p t a b l e p o l i c y - mix  strict  the Canadian  to ensure  the people of the p r o v i n c e , f o r e i g n  negative r e c e p t i v i t y dents,  butions of FI, c l e a r l y  over made.  suggest  t h e B.C.  " f r o m what c o u n t r y " b u t  investment  growing was  analysis.  interest  half  of the  on t h e p a s t  t h a t t h e B.C.  still The respon-  contri^  r e s i d e n t s want  Japanese  r e s i d e n t s ' major concern "how"  desired  and  business i s not  the i n v e s t m e n t would  r o l e o f t h e government t o d i r e c t the importance  s t r a t e g i e s which c o u l d u t i l i z e distribution  the best  favourable impressions of  indicate that  The  projects,  change i n i n v e s t m e n t p a t t e r n s .  Overwhelmingly people  introduced,  f a v o u r a b l e development i n p u t .  t o f u t u r e F I by a l m o s t  the  revealed  investment would  i n s p i t e of the m a j o r i t y consensus  -structural  w o u l d be  c o n t r o l of a l l investment  government r e g u l a t i o n s  p o s s i b l y be r e g a r d e d a s  a  t o narrow t h i s d i s c r e p a n c y  i n t h e above F i g u r e ,  n a t u r e . The  including and  F I c a n be d i r e c t e d  of  such  development  FI to increase equitable  o f b e n e f i t s were r e a l i z e d  from t h i s  initial  be  47  CHAPTER. IV CROSSrSECTIONAL ANALYSIS OF OPINIONS 4.1.  Introduction Although  individuals'  from one a n o t h e r , of thought similar  o p i n i o n s and p r e f e r e n c e s  ;some u n d e r l y i n g u n i f o r m i t y i n t h e p a t t e r n  i s f r e q u e n t l y observed  background.  section  In o r d e r a clearer pectives this  and  solicited  chapter,  results with  vs. the  o n l y one c r o s s ^ •  from t h e survey. f r o m B.C. r e s i d e n t s i n t o  implications, different  to the a n a l y s i s of opinions.  persIn  t h e e m p h a s i s on p e r c e p t u a l d i f f e r e n c e s b a s e d  of jobs.  purpose of t e s t i n g  1  o f demographic c r o s s - s e c t i o n a l a n a l y s i s  sex, age, e d u c a t i o n , nature  with  attitudinal  ''opinion l e a d e r s '  t o b r i n g the responses  s h o u l d be g i v e n  chapter,  which represented  framework f o r p o l i c y  are presented on  viewpoint,  of opinions  among g r o u p s o f p e o p l e  In the previous  d i f f e r e n c e s were examined f r o m "general public"  differ  income, l e n g t h o f r e s i d e n c e  i n B.C.,  T h e s e v a r i a b l e s were s e l e c t e d f o r t h e t h e f o l l o w i n g h y p o t h e s e s w h i c h were d e r i v e d  f r o m t h e o b s e r v a t i o n o f p a s t r e l a t i o n s h i p s between F I p r o j e c t s and  certain  segments o f t h e p o p u l a t i o n .  (a) S u b s t a n t i a l d i f f e r e n c e s o f p e r c e p t i o n between m a l e and  female respondents  industrial Pearse,  development.  Paterson,  were e x p e c t e d  due t o t h e n a t u r e o f  A s many B.C. e c o n o m i s t s  e t a l . ) have s t a t e d , B r i t i s h  (Shearer,  Columbia's  economic growth has been h e a v i l y dependent on n a t u r a l exploitation.  I n any o f t h e s e  resource  development  resource  schemes,  48 women have a l w a y s r e m a i n e d e c o n o m i c a l l y nature  of resource  women's a c c e s s  exploitation  h a s been h i g h l y  t o employment was l i m i t e d  N o t .only h a v e women t r a d i t i o n a l l y t e r m s o f employment, t h e y  (It  male-oriented,  to indirect  i s assumed h e r e  accutely.)  benefited less i n  community f a c i l i t i e s a n d  t h a t women a r e more i n v o l v e d t h a n life  and t h e r e f o r e f e e l  These r a t h e r n e g a t i v e  industrial  respondents  aspects  will  have l e s s  compared w i t h  counterparts.  (b) T h e n a t u r e induced  o f women's s t a t u s that  from o u t s i d e o f t h e  due t o t h e d i f f i c u l t y  to recruit  workers  required f o r resource  exploitation.  the past,  B.C.  ventures  desirability  o f F I was c o n s i d e r e d  I f i t i s assumed t h a t m i g r a t i o n  t o be worth  i sbasically  areas,which  caused  newcomers t o t h e p r o v i n c e  should  FI  o l d t i m e r s who h a v e o b s e r v e d  by  was t r a d i t i o n a l l y  t o b e t h e b a s i s o f p o p u l a t i o n movement, o p p o r t u n i t y -  seeking than  As t h e  have i n v o l v e d f o r e i g n p a r t i c i p a t i o n  employment o p p o r t u n i t i e s i n r e s o u r c e believed  skilled  t h e r e l a t i o n s h i p between t h e l e n g t h o f r e s i d e n c e i n  and t h e i r  exploring.  goals  o f r e s o u r c e d e v e l o p m e n t i n B.C. h a s a l s o  province mainly  m a j o r i t y o f these  present  s e t o f development  successive inflows o f migrants  locally  female  r e c e p t i v e a t t i t u d e s toward  a different  t h e male  their  d i s r u p t i o n s more  d e v e l o p m e n t l e a d us t o h y p o t h e s i z e  f o r m o f F I and p o s s e s s  in  jobs.  d i s o r g a n i z a t i o n c r e a t e d by l a r g e i n f l o w s o f new m i g r a n t s .  h u s b a n d s i n community  in  Since the  have s u f f e r e d more f r o m t h e n e g a t i v e  e f f e c t s o f development: overloaded social  marginal.  be more r e c e p t i v e t o  F I p r o j e c t s ' c o s t s and  49  benefits  t o the r e g i o n longer than  hypothesized,  these  newcomers. I t  t h e r e f o r e , t h a t t h e r e w o u l d be  r e l a t i o n s h i p between t h e e n t e r p r i s e and  the  (c) A n o t h e r  an  inverse  l e v e l of r e c e p t i v e n e s s to  length of r e s i d e n c e i n important  v a r i a b l e was  was  foreign  B.C. t h e age  factor.  O l d e r g e n e r a t i o n s were presumed t o show l e s s d e s i r a b l e a t t i t u d e s toward F I based timers  i n B.C.  investment. is  on  the assumption  w o u l d be  On  mentioned above, i . e . o l d  less willing  to accept  further  foreign  t h e o t h e r hand, s i n c e t h e unemployment r a t e  h i g h e r among t h e y o u n g , i t was  g e n e r a t i o n s w o u l d be  expected  t h a t younger  i n favour of F I , which c o u l d  generate  employment o p p o r t u n i t i e s . (d) O t h e r of  to i n f l u e n c e the  to a s i g n i f i c a n t The  4.2  such  as e d u c a t i o n ,  income and  j o b s were i n c l u d e d i n t h e a n a l y s i s as t h e s e  believed FI  variables  "hard"  4.5.  The  statistical  character  chapter)  aim  data  of these analyses  but  to r e v e a l the  preferences.  i s aggregated  i n two  i s not  to  provide  multi-dimensional  i n the  c a t e g o r i e s , "Agree" cut-off  i n sections  Hence, a t e n - p o i n t  (used f o r t h e a n a l y s i s  " D i s a g r e e " ; . i n ^ t h i s ; case^.the scale.  awareness o f  each v a r i a b l e a r e p r e s e n t e d  of respondents'  scale of preference  were  extent.  f i n d i n g s by  through  scope of i n d i v i d u a l ' s  factors  nature  previous and  p o i n t i's ,5.50. on p  a ten^point  50  4.2.  Attitudinal  Differences  As m e n t i o n e d  by Sex  1  i n section  2.4,, t h e s u r v e y r e s u l t s  a heavy c o n c e n t r a t i o n o f male r e s p o n d e n t s This did  disproportionate  since  cross-r-section of opinions.  t h e a c t u a l decisionTinaking  males a t p r e s e n t , o v e r a l l  Forty^one responses  patterns  o f women.  indicate  t h a t more t h a n  or complete lived of  female  therresponses). Vancouver  education.  teachers  o f female  respondents  region.  their  T h e i r responses  are likely  impact  o f F I on l o c a l  one-third of  the Greater to r e f l e c t the  reflect  respondents  investment.  i n the  the concern  over  communities. respondents  t o m a l e s ) t o F I i n g e n e r a l a n d t o some  c o n c e r n i n g Japanese  training.  were e n g a g e d  T a b l e X I I summarizes r e a c t i o n o f f e m a l e (relative  Fourteen  high educational  o f the respondents  twenty-one  lives.  (which c o n s t i t u t e d  o f education, responses might  social  had some  T h i r t y - o n e o f them h a d  F o u r t e e n r e s p o n s e s came f r o m  Since over one-third  female  (9% o f t h e  50% o f ( o r 22) r e s p o n d e n t s  o p i n i o n s o f women w i t h r e l a t i v e l y  the  respondents  i n order t o describe preference  i n the province.all  r e s p o n s e s came f r o m  by  t h e sample  i n B.C. f o r more t h a n n i n e y e a r s a n d f u r t h e r  them had l i v e d  field  o b t a i n e d from  The c h a r a c t e r i s t i c s  university  However,  p r e s e n t a t i o n o f B.C. o p i n i o n .  from  sample) were e x a m i n e d  population  process i s predominated  attitudes  s h o u l d be r e g a r d e d a s a f a i r  total  i n t h e sample.  r e p r e s e n t a t i o n o f male-female  not provide a v a l i d  showed  Almost  statements  three quarters of  were aware o f a n e x c e s s amount o f f o r e i g n  51 TABLE J K J I R e a c t i o n t o F l y P r e s e n t and F u t u r e : By M a l e and F e m a l e (Figures  A.  i n b r a c k e t s a r e numbers o f r e s p o n d e n t s . )  T h e r e i s t o o much f o r e i g n c a p i t a l i n v e s t e d i n B.C.  (360) ( 35)  16% 12%  ( 67) ( 5)  80% 73%  (339) ( 30)  20% 27%  ( 86) ( 11)  54% 44%  (220) ( 17)  46% 56%  (190) ( 22)  83.5% (353) 80% ( 32)  16.5% ( 70) 20% ( 8)  80% (339) 80.5%( 33)  20% ( 85) 19.5%( 8)  69% (291) 77.5%( 31)  31% (132) 22.5%( 9)  54% 67%  46% 33%  I n c r e a s i n g J a p a n e s e i n v e s t m e n t i n B.C. i s l i k e l y t o cause p o l i t i c a l f r i c t i o n i n the future. Male Female  H.  84% 88%  Japanese investment w i l l increase l o c a l employment o p p o r t u n i t i e s i n t h e future. Male Female  G.  (195) ( 11)  Japanese business involvement i n the p r o v i n c e has i n c r e a s e d d i r e c t o r i n d i r e c t employment o p p o r t u n i t i e s . Male Female  F  46% 27.5  B.C. Needs more i n v e s t m e n t f r o m foreign countries. Male Female  E.  54% (231) 72.5% ( 29)  F o r e i g n i n v e s t m e n t has improved t h e q u a l i t y o f l i f e i n B.C. Male Female  D.  Disagree  I n g e n e r a l , f o r e i g n i n v e s t m e n t has b e e n b e n e f i c i a l t o t h e economic development i n B.C. Male Female  C.  Agree being  Male Female B.  Respondents  I n c r e a s i n g J a p a n e s e i n v e s t m e n t i n B.C. i s l i k e l y to cause s o c i a l f r i c t i o n i n the future. Male Female  (231) ( 26)  (194) ( 13)  52  capital  invested  i n the province.  of  F I , 88% o r 35 r e s p o n d e n t s  of  F I t o economic development.  its  positive  life  relation  decreased  With  regard to the effects  acknowledged t h e c o n t r i b u t i o n However, t h e s u p p o r t g i v e n t o  t o t h e improvement o f t h e q u a l i t y o f  t o 73%, a 15% d r o p  from  the responses  q u e s t i o n c o n c e r n i n g economic development. are is  compared w i t h r e s p o n s e s a g r e a t e r tendency  life  h a s been i m p r o v e d  When t h e s e  f r o m men, i t i s c l e a r  f o r women t o d o u b t by p a s t F I .  to the  that  results  that  there  the quality of  This probably explains  women's g r e a t e r r e l u c t a n c e t o a c c e p t F I i n t h e f u t u r e . findings affirmed receptive  t h e h y p o t h e s i s t h a t women w o u l d be l e s s  t h a n men t o w a r d F I .  O p i n i o n s o f female  respondents  were c o r r e l a t e d  t h o s e o f m a l e c o u n t e r p a r t s c o n c e r n i n g employment g e n e r a t e d by Japanese adverse their  reaction  alertness  investment.  t o Japanese to potential  of  high s o c i a l  to  indicate from  friction  that  their  investment  opportunities  political  or social  friction.  and p r e d i c t i o n  investment  development g o a l s a r e s l i g h t l y  t h o s e o f men, w i t h a s t r o n g e r o r i e n t a t i o n  r e a c t i o n t o t h e Japanese indicated  that  with  p e r se, except f o r  by f u t u r e J a p a n e s e  improvement o f t h e s o c i a l  favourable  closely  T h e y d i d n o t i n d i c a t e any  Women's c o n c e r n o v e r t h e q u a l i t y o f l i f e  erent  These  environment.  The f a c t  that  seem difftoward t h e their  b u s i n e s s community was p r e d o m i n a n t l y the introduction  of a foreign  53  factor the  i n their  public  facilities  community was q u i t e a c c e p t a b l e  sector  and t h e i n v e s t o r would p r o v i d e  infrastructure capacities. services  i n order The  should  the present  t o increase  the l e v e l  i n future  i n jobopportunities  i n v e s t m e n t were a s h i g h  among women.  part of future  labour  they regarded  should  expectations  from  (Although  Japanese  this  themselves as  force for F I projects, i t i s l i k e l y  r e s p o n s e s have p o s i t i v e e x p e c t a t i o n s . )  therefore,  Their  accruing  a s t h o s e o f men.  d o e s n o t n e c e s s a r i l y mean t h a t  consider  women i f t h e y want h i g h e r  4.3.  plans  p r o v i s i o n o f employment i s a n o t h e r f a c t o r w h i c h  toward an i n c r e a s e  project  facilities  development  of satisfaction  d e t e r m i n e s women's r e c e p t i v i t y t o f u t u r e F I .  their  so t h a t  human r e s o u r c e s a n d  The p r o v i s i o n o f s o c i a l  be i n c o r p o r a t e d  as both  enough  t o accommodate t h e g r o w t h o f t h e community  development would n o t s t r a i n  and  as long  providing  Future  that  investors,  job opportunities f o r  receptiveness  f r o m women i n t h e  region.  A t t i t u d i n a l Difference Without doubt, f u t u r e  by t h e L e n g t h o f R e s i d e n c e investment p r o j e c t s w i l l  i n B.C.  have a  certain  i m p a c t o n s p a t i a l d i s t r i b u t i o n o f m i g r a n t s t o B.C. f r o m  eastern  provinces  this  impact,  as w e l l  as from abroad.  however, v a r i e s a c c o r d i n g  The e x p l a n a t i o n o f  t o two d i f f e r e n t  i n t e r p r e t a t i o n s o f f u n c t i o n a l economic approaches t o r e g i o n a l g r o w t h , namely a demand o r i e n t e d t - m o d e l and . a - s u p p l y model.  oriented  54  The  demand m o d e l  factors  as  assumes  that  and  a  generator the  capital,  outside  emphasis  supply  industry  opportunities  and  In  of  a  course  demand m o d e l  makers  and  capital  the other that  less  exogenous  by  a  which  been  hand,  region's  t h a n by  tor  are at the heart  looking  (Richardson, This relevant area.  However,  the  has  of  policy  inflows  of  foreign  province.  of regional  growth  i s determined of  -.  words,  In other  input  growth  of of  process  and  internal fac-  this  ( i . e .supply)  regional  t o cope must  with  occur  exogenous  growth  the metropolitan  o f economic  are located,  to respond to the  by  notion  side  93).  i . e . development i n demand  this  the  region.  availability  the growth  from the  the nature  inevitably  resources has  p.  of  the  flows  interpretation  to explain  province factor,  supply  capital  a t growth  1974,  i n B.C.,  f o r growth  main  job  to the  model  capacity  the  provide  the  supply  regional  identifying  increase  large  labour from  hence  throughout the  -  suggest  mainly  industries  demand and  on  predominantly favoured  such  labour  model,  consequently  i n the  model  t h e demand  centred  development  exogenous  approach to  adopted t h i s  would  resources flows  traditional  i s reflected  assumes  t o meet  strategies  regional  to provide  On  often  This  resources,  c o n c o m i t a n t income  has  this  elastic  importance of  growth.  internal  The  o f development  propulsive  the  of  region.  planning  the  of regional  i s perfectly  of the  development  recognizes  development  the  fixed  where  the  If  Vancouver in  this  locational natural  thus development demand.  seems  strategy  inter-regional  55  m i g r a t i o n i s n e c e s s i t a t e d f o r the resourcerdeyelopment i s e s s e n t i a l to e x p l o r e what new  migrants'  compared w i t h o l d timers i n the p r o v i n c e . presented  i n 4.1,  hypothesis  exist.  r e s u l t s of the a n a l y s i s appear i n Table X I I I .  These r e s u l t s r e v e a l e d t h a t the people who p r o v i n c e i n r e c e n t years d i d not express of FI as expected.  had come to t h i s  high  of i t s c o n t r i b u t i o n t o economic and the lowest among a l l sub-groups. r e a c t i o n from newcomers was  their evaluation  s o c i a l development i s  T h i s somewhat i n d i f f e r e n t  c o n t r a s t e d with the group of  " i n t e r m e d i a t e range" r e s i d e n t s . The f o r 3-6  desirability  They d i d not p a r t i c u l a r l y p e r c e i v e FI  as t h e i r p o t e n t i a l source of employment, and  i n B.C.  are,  i s based on the n o t i o n of a demand-model  that the people move to p l a c e s where jobs The  priorities The  it  f  respondents who  years seemed t o become aware of the  of F I to r e g i o n a l economic s t r u c t u r e .  The high  again d e c l i n e d as the l e n g t h of r e s i d e n c e has i s p o s s i b l y because the longer the people became more amenity-oriented  have l i v e d significance  desirability  extended. T h i s  l i v e d i n B.C.,  they  (as b a s i c economic needs were  s a t i s f i e d ) and d i d not want any  f u t u r e FI which would not  b e n e f i t them d i r e c t l y . The  f a c t t h a t hew  migrants d i d not respond  c o u l d be i n t e r p r e t e d i n two  ways: The  i s t h a t they d i d not understand employment o p p o r t u n i t i e s and  likely  favourably  interpretation  the connection between the  foreign  investment.  56  TABLE .XIII R e a c t i o n t o F I and J a p a n e s e R e s i d e n c e i n B.C.  Investment;  By: t h e L e n g t h o f  Agree A.  T h e r e i s t o o much f o r e i g n c a p i t a l invested i n the province. 1-3 y e a r s 3-6 6-9 9 and o v e r All life  B.  being  (21) (27) (31) (191) (195)  F o r e i g n i n v e s t m e n t has improved o f l i f e i n B.C.  B.C. n e e d s more i n v e s t m e n t  from  foreign  81% 89% 90% 84% 84%  19% 11% 10% 16% 16%  76% 89% 90% 79% 76%  24% 11% 10% 21% 24%  countries.  1^3 y e a r s 3-6 6-9 9 and over All life E.  52% 56% 52% 48% 38%  the q u a l i t y  1-3 y e a r s 3-6 6-9 9 and o v e r All life D.  48% 44% 48% 52% 62%  In g e n e r a l , f o r e i g n i n v e s t m e n t has been b e n e f i c i a l t o t h e economic development i n B.C. , 1-3 y e a r s 3-6 6-9 9 and o v e r All life  C.  Disagree  48% 58% 45% 57% 49%  52% 42% 55% 43% 51%  57% 59% 61% 69% 73%  43% 41% 39% 31% 27%  I n c r e a s i n g J a p a n e s e i n v e s t m e n t i n B.C. i s l i k e l y t o cause p o l i t i c a l f r i c t i o n i n the future. 1-3 y e a r s 3-6 6-9 9 and o v e r all life  57  F,  I n c r e a s i n g J a p a n e s e i n v e s t m e n t i n B.C. cause s o c i a l f r i c t i o n i n the f u t u r e .  i s l i k e l y to  Agree 1-3 y e a r s 3-6 6-9 9 and o v e r All life Another  Disagree  43% 52% 52% 55% 57%  interpretation  57% 48% 48% 45% 43%  i s t h a t they d i d understand  the connection  b u t . t h e . employment o p p o r t u n i t i e s were n o t n e c e s s a r i l y t h e m a j o r r e a s o n why  p e o p l e moved  the case, the r e j e c t i o n on  to t h i s  province.  o f t h e h y p o t h e s i s , w h i c h was  demand m o d e l o f r e g i o n a l g r o w t h , i n d i c a t e s  attitudes  reflect  If this i s  the tendency  p e o p l e move where t h e s o c i a l  that  of post-industrial  and e n v i r o n m e n t a l  based  newcomers' society;  amenities can  be o b t a i n e d . The  notable reaction  illustrated lived  also  to Japanese  i n T a b l e X I I I , was  investment  that  sub-groups,  the longer  people  i n t h e p r o v i n c e , t h e more t h e y were s e n s i t i v e t o  potential political investment.  and s o c i a l  only benefits respondents The the amenity  friction  T h i s i s p r o b a b l y because  were more aware o f t h e f a c t a certain  who  t h e longttLme  t h a t p r e s e n t Japanese  less  identified  f a c t o r may  Japanese  sector  (inadequate  become  time  investment  i n the province.  in this  section  suggest  that  an i m p o r t a n t d e t e r m i n a n t o f  should investigate backlog s o c i a l  social  residents  segment o f t h e p o p u l a t i o n t h a n t h e  had s p e n t  results  due t o  f u t u r e r e c e p t i v e n e s s t o F I among B.C. r e s i d e n t s . public  by  s e r v i c e s and f a c i l i t i e s  The needs  t o meet t h e n e e d s  58  of e x i s t i n g (new  r e s i d e n t s ) as w e l l a,s e x p a n s i o n a r y  s e r v i c e s and  facilities  w h i c h w o u l d be  the needs o f a l a r g e r p o p u l a t i o n ) declining  receptivity with  needs  n e e d e d t o meet  i n order to reverse  the  the l e n g t h of r e s i d e n c e i n the  province. 4.4.  R e c e p t i v i t y D i f f e r e n c e s b y Age R e s p o n d e n t s ' age  v a r i a b l e s w h i c h may Figure  have an  4 illustrates  dents': age  and  distribution  Group  i s one  i n f l u e n c e on  a correlation  their receptivity  of the  important  opinion  formation.  existing  between  respon^  to F I .  FIGURE 4 "B.C.  n e e d s more i n v e s t m e n t  from  f o r e i g n c o u n t r i e s . " : By Age  Group  Agree 100%  50%  15-19 ( 3)*  20-24 (26)  *Numbers i n b r a c k e t s group. Respondents from acceptance  25-29 (56)  indicate  30-34 (72)  50-59 (85)  t h e number s a m p l e d  the o l d e s t  (69% a g r e e i n g w i t h  35-49 (157)  the  age  60  i n each  c o h o r t showed t h e  & over (58) age  highest  statement) of f u t u r e F I ,  59  then  acceptance  y o u n g e r age age  groups.  of t h i r t y The  this (1)  More t h a n  50%  corresponding  of respondents  v a r y , d e p e n d i n g on  will  (2)  than  continue  older  age  two  different  g r o u p s and  o f age  the  time,  on  assumptions:  current preference  the r e c e p t i v i t y  t h e p r e s e n t l e v e l w i h i n a few  t o d e c l i n e as  I f people's  opinion  change o v e r  over  t r e n d based  I f i t i s assumed t h a t e a c h i n d i v i d u a l ' s does n o t  to  n e e d s more F I i n t h e f u t u r e .  projection of a future receptivity  become l o w e r  to FI  decades  will and  t h e y o u n g e r g e n e r a t i o n moves t o  forms t h e c o r e o f t h e w o r k i n g  p r e f e r e n c e s change over  transformation process 30-34, t h e r e c e p t i v i t y  occurs  time,  i n the  c u r v e may  and  force. a  slight  neighbourhood  w e l l s t a y as  i t is  the f u t u r e . A positive  f u t u r e F I and age, on  declined steadily  b e l i e v e d t h a t B.C.  figure w i l l  pattern  in  levels  on  correlation  t h e age  the X a x i s ,  distribution  shifts  the Y a x i s s h i f t s  observed  chapter.  The  -  to the r i g h t ,  upward, a p p e a r s  c o h o r t s c o u l d be  high acceptance  interpreted  o f t h e g e n e r a t i o n s who tunities  and  these m a t e r i a l l y  desirability  to r e s u l t i n the  expressed  as r e f l e c t i n g  Black  of  introduction by  FI  i n the of  older  the m e n t a l i t y  came t o t h e West, s e e k i n g new  m a t e r i a l wealth.  of  o f the'- sample, i . e . as  r e j e c t i o n o f the h y p o t h e s i s p r e s e n t e d this  between a c c e p t a n c e  oppor-  (1968) e x p l a i n e d  o r i e n t e d B r i t i s h C o l u m b i a n s as f o l l o w s :  E x p l a n a t i o n s f o r t h i s m a t e r i a l i s m may be f o u n d , i n p a r t , i n t h e c h a r a c t e r o f t h e p r o v i n c e as a .continuously e v o l v i n g f r o n t i e r with a f r o n t i e r  60  population a f r o n t i e r economy, and a f r o n t i e r t y p e o f p o l i t i c s . ., T h e y were i s o l a t e d , p a r o c h i a l , moneys-seeking, and a l l were r e c e n t i m m i g r a n t s - most o f them w i t h some e d u c a t i o n and r a i s e d i n r e l a t i v e l y c i v i l i z e d communities. f  I t was  clarified  i n the previous chapter that  of  the respondents  in  terms  I t was  a s s o c i a t e d F I w i t h economic  o f h i g h e r income l e v e l s  obvious  from t h i s  maintain a p o s i t i v e FI,  and  analysis  attitude  impact  criteria  the p r o v i s i o n o f  t h a t the o l d e r  toward  still  from  g e n e r a t i o n might  t o more c o n c e r n w i t h i a i e p o l i t i c a l  and  social  of FI.  R e s p o n s e s f r o m young p e o p l e i n d i c a t e d attitudes  toward  FI.  a s p e c t s of Japanese  T a b l e XIV investment.  less  receptive  summarizes r e a c t i o n The  responses  from  20-24 c o h o r t s u g g e s t s t h e l o w e s t s u p p o r t t o f u t u r e opportunities  by J a p a n e s e  predicted high p o l i t i c a l o c c u r as a r e s u l t in  employment.  cohorts  economic b e n e f i t s  w h i l e the v a l u e system o f the younger  have s h i f t e d  the m a j o r i t y  investment. and  social  o f f u t u r e Japanese  The  was  business  the employment  same age  friction  t o some  group  likely  to  involvements  B.C. As  f a r as t h e r e a c t i o n s  are  concerned  was  rejected  attitudes These  the assumption because  from t h e younger presented i n the  generations introduction  young c o h o r t s showed t h e l e a s t  t o a c c e p t b o t h F I i n g e n e r a l and  a t t i t u d e s a g a i n s t any  c o u n t r i e s a r e l i k e l y to.be an  Japanese  form o f i n v e s t m e n t indicator  among y o u n g p e o p l e o v e r p o s s i b l e  from  of growing  foreign control  willing investment. foreign  concern i n every  61  s e c t o r of. t h e of the  economy.  changing value  Canadian economic C a n a d i a n way  of  the m e n t a l i t y over the  awareness i s the  life  without  the  establishment  Unless  t o change the p r e s e n t  the  g o v e r n m e n t and  shift  changed attempt  future  to f o l l o w the  a structural  a  economy,  investors  investment s t r u c t u r e , the  i s most l i k e l y  T h i s would r e p r e s e n t  certainly  on  of  f o r e i g n i n f l u e n c e i n her  o f B r i t i s h C o l u m b i a n s has  trend  manifestation  s y s t e m w h i c h p l a c e s more e m p h a s i s  i n d e p e n d e n c e and  decades.  receptivity  If this  assumption  i n preferences  (1).  toward  FI. If, of the then  however, t h e i r  r e l a t i o n s h i p between F I and  i t i s p o s s i b l e t h a t the  transformation 4.5.  process)  will  Influence The  take  revealed  possessed  situation.  nine  out  place  different  of  ten  presented  in  Responding to a t t i t u d i n a l  lowest  expectation  w h i c h m i g h t be  Nature of Jobs  educational  background  school  r e a c t i o n s to the XV  with  current  indicate that  regarding  c r e a t e d by  statements  less  formal  sub-group invested  concerning  education  f u t u r e employment  Japanese business  on  Opinions  t o o much f o r e i g n c a p i t a l b e i n g  Japanese investment, those the  future.  respondents from t h i s p a r t i c u l a r  t h a t t h e r e was  B.C.  i n the  i n Table  believed  ignorance  opinion  to elementary  strong negative  Figures  (an  B a c k g r o u n d on  that respondents l i m i t e d  education  the  employment o p p o r t u n i t i e s ,  Income, and  of Educational  a n a l y s i s b a s e d on  b a s e d on  second process  The Impact o f E d u c a t i o n , Receptivity  4.5.1.  FI  r e l u c t a n c e was  showed  opportunities  involvement.  They  62  TABLE  Reaction t o Future Japanese  xiy  Investment;  By Age Group Agree  Disagree  A. Japanese b u s i n e s s involvement i n the p r o v i n c e has i n c r e a s e d d i r e c t o r i n d i r e c t employment o p p o r t u n i t i e s . 20-24 years o l d 25-29 30-34 35-49 50-59 60 and over  84% 80% 86% 85% 76% 85%  16% 20% 14% 15% 24% 15%  69% 83% 86% 79% 76% 80%  31% 17% 14% 21% 24% 20%  B. Japanese investment w i l l i n c r e a s e l o c a l employment o p p o r t u n i t i e s i n the f u t u r e . 20-24 25-29 30-34 35-49 50S59 60 and over  C. I n c r e a s i n g Japanese investment i n B.C. i s l i k e l y t o cause p o l i t i c a l f r i c t i o n i n the f u t u r e . 20-24 25-29 30-34 35-49 50-59 60 and over  76% 73% 67% 70% 69% 68%  24% 27% 33% 30% 31% 32%  D. I n c r e a s i n g Japanese investment i n B.C. i s l i k e l y to cause s o c i a l f r i c t i o n i n the future. - n-.">.'  20-24 25-29 30-34 35-49 50-59 60 and over  69% 53% 57% 54% 53% 56%  31% 47% 43% 46% 47% 44%  E . Japanese f i r m s i n B.C. a r e more l i k e l y t o c o r p o r a t e c w i t h the p r o v i n c i a l government than a r e Canadian companies. 20-24 25-29 30-34 35-49 50-59 60 and over  84% 77% 76% 76% 78%  1.65 235 245 245 22'-  63 also predicted  the  highest  Japanese i n v e s t o r s One of  this  for  way  of  unknown and  of  i n t e r p r e t i n g the  they  educated people  lack  of  sufficient  members o f foreign  This local  knowledge o f t e n  process  local  this  on  negative  the  the  certainly  of  something Since information,  to adverse r e a c t i o n  will  be  consulted  i m p a c t s and  a f f e c t e d by  and  provided  outcomes o f  unnecessary  people with.less  the  present  overlooked  Their  to  friction  the  new sufficient  the  projects.  between  formal  education  r e f l e c t e d the  f e e l i n g of  create  FI  situation.  i n any  FI p r o j e c t  by  Japanese  deprived  clarified Since  decision-making i n terms  i n d i f f e r e n c e toward  employment o p p o r t u n i t i e s  which i n t u r n could  as  generator  communities.  leads  b e n e f i t f r o m any  employment o p p o r t u n i t i e s . increase  FI  p o t e n t i a l f o r Japanese investment  r e a c t i o n to  they hardly  employment  investors.  s u b - g r o u p t e n d s t o be  process,  an  people  I t i s e s s e n t i a l to ensure t h a t  eradicate  c o m m u n i t i e s and  to questions  as  their  community, who  concerning should  FI  the  communities.  Responses from the  their  to  i n v e s t m e n t p r o j e c t s , be  information  by-  t e n d t o have l i m i t e d c h a n n e l s o f  Implication;:;  the  results i s that  seemed t o p e r c e i v e d  factors in their Policy  perceive  potential threat  less  foreign  caused  among a l l s u b - g r o u p s .  sub-group d i d not  them; r a t h e r ,  potential frictions  future  investment  opportunity,  adverse r e a c t i o n to  of  FI.  TABLE Reaction  XV  t o F I and J a p a n e s e I n v e s t m e n t , P r e s e n t and F u t u r e : by E d u c a t i o n a l  Education Elementary (some, F i n i s h e d ) Secondary (Some, F i n i s h e d ) Vocational (Some, F i n i s h e d ) University (Some, F i n i s h e d )  Education Elementary Secondary  Background  S. 6A S. 7 S. 3 S. 5 No. o f Responses Agree Disagree Agree Disagree Agree D i s a g r e e Agree D i s a g r e e 10  90%  10%  90%  10%  80%  20%  50%  131  54%  46%  84%  16%  80%  20%  51%  49%  103  62%  38%  81%  19%  74%  26%  55%  45%  226  52%  48%  87%  13%  81%  19%  53%  43%  ;  50% ; 6  S.16 S. 15 S. 14 S.13 A g r e e D i s a g r e e A g r e e D i s a g r e e .A g r e e D i s a g r e e A g r e e D i s a g r e e 11% 100% 0% 70% 89% 40% 60% 30% 79%  Vocational  82.5%  University  86%  21%  76.5%  23.5%  72%  28%  61.5%  38.5%  17.5%  83%  17%  67%  33%  50%  50%  14%  83%  17%  68%  32%  52%  48%  S t a t e m e n t s 3. T h e r e i s t o o much f o r e i g n c a p i t a l b e i n g i n v e s t e d i n B.C. 5. I n g e n e r a l , f o r e i g n i n v e s t m e n t h a s b e e n b e n e f i c i a l t o t h e e c o n o m i c d e v e l o p m e n t i n B.C. 6 A . F o r e i g n i n v e s t m e n t h a s i m p r o v e d t h e q u a l i t y o f l i f e i n B.C. 7. B.C. n e e d s more i n v e s t m e n t f r o m f o r e i g n c o u n t r i e s . Statements 13. J a p a n e s e b u s i n e s s i n v o l v e m e n t i n t h e p r o v i n c e h a s i n c r e a s e d d i r e c t o r i n d i r e c t employment o p p o r t u n i t i e s . 14. J a p a n e s e i n v e s t m e n t w i l l i n c r e a s e l o c a l e m p l o y m e n t o p p o r t u n i t i e s i n t h e f u t u r e . 1 5 . I n c r e a s i n g J a p a n e s e i n v e s t m e n t i n B.C. i s l i k e l y t o c a u s e p o l i t i c a l friction in the future. 1 6 . I n c r e a s i n g J a p a n e s e i n v e s t m e n t i n B.C. i s l i k e l y t o c a u s e s o c i a l f r i c t i o n i n t h e future.  4.5.2.  Income D i f f e r e n c e s  T a b l e XVI groups. and  The  summarizes t h e r e s u l t s group  of respondents  over, which accounted  s a m p l e , was Japanese  income g r o u p  On  o u t an  income g r o u p s  "U"  $25,000 of  the  i n f a v o u r o f F I as w e l l  as  of  the c o n t r a r y , responses  o f $12,000 - 14,999 g a v e t h e l o w e s t  to a l l the statements. traced  w i t h income o f  income  f o r more t h a n o n e - t h i r d  predominantly  investment.  by d i f f e r e n t  The  desirability  of f u t u r e  - s h a p e , as t h e h i g h e s t and  showed p o s i t i v e  the  from  the  evaluation FI lowest  receptiveness (Figure  5).  FIGURE 5 "B.C. n e e d s more i n v e s t m e n t By Income L e v e l s  from  foreign  countries.":  Agree 100% 70%  $0-• $11,999 The group  $12,000$14,999  high receptivity  $15,000$19,999 expressed  $20,000$24,000 from  $25,000 and o v e r  t h e h i g h e s t income  c o r r e s p o n d s w i t h t h e c o n c l u s i o n drawn f r o m  the  analysis  TABLE XVI Reaction  No. Income  t o F I a n d J a p a n e s e I n v e s t m e n t : By  of  S. 3  Responses  Agree  Income  S. 5  Disagree  Agree  Levels  S . 6A  Disagree  S .7  Agree Disagree  Agree Disagree  $0  -  $11,999  71  56%  44%  82%  18%  73%  27%  57%  $12,000  -  $14,999  73  66%  34%  76%  24%  71%  29%  37%  $15,000  -  $19,999  83  61%  39%  84%  16%  78%  22%  48%  $20,000  -  $24,999  79  60%  40%  83%  17%  79%  21%  49%  51%  $25,000  and  140  45%  55%  94%  6%  86%  14%  64%  36%  over  S-13 Agree  S.14  Disagree  Agree  S.15  Disagree  Agree  Agree  Disagree  32%  59%  41%  22%  62%  38%  $0  -  $11,999  84%  16%  80%  20%  68%  $12,000  -  $14,999  75%  25%  67%  33%  78%  $15,000  -  $19,999  88%  12%  81%  19%  71%  29%  48%  52%  $20,000  -  $24,999  79%  21%  78%  22%  74%  26%  54%  46%  $25,000  and  83%  12%  87%  13%  63%  37%  53%  47%  over  63% ;  S.16  Disagree  "  43%  52%  67  the p r e v i o u s  chapter:  concentrated  i n both  The p a s t b e n e f i c i a r i e s provincial  Responses from t h e lowest toward  and l o c a l b u s i n e s s  income g r o u p s show t h e i r  f u t u r e F I a s a n income o r employment  4.5,3,  o f F I were  mostly  groups. expectations  generator.  A n a l y s i s by N a t u r e o f J o b s The  Gray Report  (1972) s t a t e d one o f t h e n e g a t i v e  o f F I on income d i s t r i b u t i o n  effects  as f o l l o w s :  Where f o r e i g n i n v e s t m e n t i s p a r t i c u l a r l y c a p i t a l i n t e n s i v e i n n a t u r e , a s h a s b e e n t h e c a s e i n many r e s o u r c e e x t r a c t i o n and p r o c e s s i n g i n d u s t r i e s , l a b o u r ' s s h a r e o f t h e v a l u e a d d e d may be r e l a t i v e l y s m a l l i n comparision w i t h t h a t enjoyed byy the owners o f t h e c a p i t a l . In view o f t h e f a c t  t h a t B r i t i s h Columbia's  economic  g r o w t h h a s been h e a v i l y d e p e n d e n t on n a t u r a l r e s o u r c e e x t r a c t i o n which i n v i t e d distribution  successive inflows of foreign c a p i t a l , o f income between l a b o u r  s h o u l d have c r e a t e d d i c h o t o m i z e d the p o l a r i t y business made h e r e two  natural art, as  opinions  toward F I .  clerical,  "white c o l l a r "  and " b l u e  construction,  science, r e l i g i o n ,  workers.  Others  f i s h i n g , mining,  jobs  into  collar"  education,  medicine,  classified  whose j o b s were r e l a t e d t o  processing, forestry,  t r a n s p o r t a t i o n , mechanical  h a n d l i n g were c l a s s i f i e d  provincial  t o managerial,  s e r v i c e and s a l e s p o s i t i o n s were  "white c o l l a r "  agriculture,  between  o f respondents'  R e s p o n d e n t s whose j o b s were r e l a t e d science, social  Although  r e p r e s e n t a t i v e s , an a t t e m p t was  to categorize the nature  m a j o r g r o u p s , namely  workers.  and owners o f t h e c a p i t a l  o f o p i n i o n s was a l r e a d y o b s e r v e d  l e a d e r s and u n i o n  unequal  as "blue c o l l a r "  fabricating,  o p e r a t i o n and m a t e r i a l workers.  68  Tahle JXyil Blue  illustrates  the r e s u l t s  c o l l a r w o r k e r s showed a l e s s  i n g e n e r a l and  also  indicated  a lesser  several  This receptivity  d i f f e r e n t ways.  One  these  degree of accrues  difference  l a b o u r and  d e s c r i b e d above.  out  from  priority  the  local  labour  f o r c e tend  o f income between  is  t o j o b s among l o c a l  that the  influenced As  locational  Pearse  jobs'," , T h e : low  factor,  A  final  this  unequal  interpretation  e x p l a i n e d below might  associated  develop  near  Regional d i s t r i b u t i o n  determined  that  residents.  the  r e c e p t i v i t y . , from;  (1975) p o i n t e d o u t , n a t u r a l r e s o u r c e  inevitably  themselves.  the nodal  left  have  the discrepancy of o p i n i o n s .  industries  is  Another  t o be  t h e b l u e c o l l a r work f o r c e m i g h t have r e f l e c t e d access  blue  j o b m a r k e t w h i l e t h e u n i o n members a r e g i v e n  i n o b t a i n i n g new  FI  Japanese  i s t h a t the  distribution  that non-unionized  toward  explained i n  c o l l a r workers p e r c e i v e d unequal  is  groups.  acceptance  from  c a n be  interpretation  owners o f t h e c a p i t a l  two  receptive reaction  o f t h e n o t i o n t h a t employment c r e a t i o n investment.  by  mainly  tertiary  by  tend  c e n t r e of Vancouver.  The  i f one  to n a t u r a l resources of a c t i v i t i e s ,  n a t u r a l endowment, w h i l e  activities  t o be  therefore, their  concentrated  likely  job i s c r e a t e d i n the resource  w o u l d .create more, j o b s i n t e r t i a r y  based  activity  in  phenomenon i s frontier, i t i n t h e metropolis.''"  "4forota (1974) e x p l a i n e d t h i s phenomenon i n J a p a n e s e i n d u s t r i a l d e v e l o p m e n t s i t u a t i o n as f o l l o w s : " W h e n one j o b i s c r e a t e d i n a r e g i o n a l new town, i t c r e a t e s more j o b s i n t h e t e r t i a r y i n d u s t r y i n the m e g a l o p o l i s . T h e r e f o r e , the p o l i c y to promote r e g i o n a l i n d u s t r i a l development w i t h o u t d e c e n t r a l i z i n g t h e h e a d q u a r t e r s ' f u n c t i o n s i n Tokyo a c c e l e r a t e s t h e t r i c k l e - u p e f f e c t and l e a d s t o more p o p u l a t i o n g r o w t h i n t h e m e g a l o p o l i s . " ( D a i t o s h i S e l s a k u , - P o l i c y f o r t h e M e g a l o p o l i s - , p.22).  TABLE XVII R e a c t i o n to FI and Japanese Investment: By Nature o f Jobs  Nature o f Jobs White C o l l a r  No. o f Responses  S. 3 S. 5 S. 6A S. 7 Agree D i s a g r e e Agree D i s a g r e e Agree D i s a g r e e Agree D i s a g r e e  324  53%  47%  87%  13%  81%  19%  55%  45%  Blue C o l l a r  74  64%  36%  80%  20%  77%  23%  45%  55%  Nature o f Jobs  S.13 Agree D i s a g r e e  (3^14 Agree D i s a g r e e  S.15 Agree D i s a g r e e  S.16 Agree D i s a g r e e  White C o l l a r  85%  15%  82%  18%6  69%  31%  53%  47%  Blue C o l l a r  75%  25%  75%  25%  81%  19%  61%  3S%  70  C o n s e q u e n t l y , more employment o p p o r t u n i t i e s a m e n i t i e s as polis,  a r e s u l t of FI  are  and  concentrated  i n the  b e n e f i t i n g the w h i t e c o l l a r workers.  c o l l a r w o r k e r s have t o  stay  i n the  urban a m e n i t i e s a r e o b t a i n a b l e . mechanism, w h i c h t e n d s  ;  The  metro^  skilled  h i n t e r l a n d where  The  to create  concomitant  impact o f  this  a dichotomized  less industrial  labour force, :  o n _ t h e r e s i d e n t s ' " a t t i t u d e s seem t o - b e ' r e f l e c t e d i n t h e 4.6.  Summary and  Conclusion  Most p r o p o n e n t s o f F I of FI  chapter  The  emphasize the major r e g i o n a l  buted equitably revealed  that  the  sub-groups.  expectations r e a l i z e d by  accruing  were i d e n t i f i e d  of  from F I .  The  younger c o h o r t s , reflect  that  opportunities  people with  labour's  Benefits  C o l u m b i a , where F I share of  the  value  less  l e s s formal  past  been  this distri-  also  FI  B.C.  understanding three  factors  differences. favourable  women, o l d t i m e  these groups d i d not g e n e r a t e d by  opinion  The  i n d i c a t e d by  Distribution of British  following  as m a j o r c a u s e s o f  toward F I  in  I t was  traditional  benefits  regional  c e r t a i n segments o f  this  Employment O p p o r t u n i t i e s . attitudes  higher  t h e s e b e n e f i t s have n o t  among s o c i e t a l  s o c i e t y were n o t of b e n e f i t s  employment and  r e s u l t s of a n a l y s i s presented  indicated that  responses.  ;  i n terms of g e n e r a t i n g  income l e v e l s .  blue  residents,  education,  b e n e f i t from  may  employment  projects.  from Resource E x p l o i t a t i o n . In  i s particularly capital-intensive, a d d e d may  be  relatively  small  in  71  comparison w i t h This  that  e n j o y e d b y t h e owners o f t h e c a p i t a l .  capitalr-intensiye nature of F I , therefore,  exacerbated  spatial  and s o c i a l  p a n c i e s between " b l u e among v a r i o u s distribution is  a major  collar'  1  of benefits  factor determining t h e i r  receptiveness  concerns  seem  with  (as w e l l  and t a n g i b l e  improvement o f s o c i a l increase  l i e i n t h e improvement  as t h e p r o v i s i o n o f j o b s ) .  consistent  indicate their  of  t h e young  sector  negative  forthis  The  i n order t o female  of residence  i n B.C.  become an i m p o r t a n t  o f F I among t h e r e s i d e n t s . people  system which  supports  However, t h e r e  was no  interpretation of political  respondents.  come  to the  a t t i t u d e s among young  changing value  of  should  f r o m F I among  receptiveness  Canadian economic independence. p o s i t i v e proof  life.  s e r v i c e s and f a c i l i t i e s  i n d i c a t e s t h e amenity f a c t o r w i l l  The  aspect  programmes r e l a t i n g  The a n a l y s i s b y t h e l e n g t h  determinant o f future  may  the public  the l e v e l o f s a t i s f a c t i o n  residents. also  i s that  to s o c i a l  F o r women, t h e  t o be d i r e c t e d t o s o c i a l  therefore  specific  given  affected region.  d e v e l o p m e n t w h i c h w o u l d a f f e c t t h e community implication  toF I .  One o f t h e s h o r t c o m i n g s o f  of development o b v i o u s l y  the q u a l i t y of l i f e  Their  up  exploitation  F I schemes was t h e l a c k o f c o n s i d e r a t i o n  d e s i r a b l e goals  w o r k e r s , and  the problem o f  from n a t u r a l r e s o u r c e  environment o f t h e d i r e c t l y  in  Opinion discrer-  and " w h i t e c o l l a r "  income g r o u p s s u g g e s t t h a t  /Amenities - Q u a l i t y o f L i f e . past  inequities.  often  orientation  72  I f we  assume tha^t t h e n a t u r a l r e s o u r c e - b a s e d  s t r u c t u r e of the p r o v i n c i a l short run, order and  a different  to i n c r e a s e the  societal  p o l i c y mix level  t o n a r r o w t h e gap  economy- w i l l  n o t change i n  s h o u l d be  The  of s a t i s f a c t i o n  policy  o f more  o p i n i o n d i s c r e p a n c i e s among t h e s e  identified  in this  a spatial This on and  people's  reflect  the  sub-groups  cross-sectional analysis.  i t s resource  based-economy, B.C.  p a t t e r n o f m e t r o p o l i s and  spatial  people  different  change s h o u l d  causes of  Because of  the  introduced i n  o f o p p o r t u n i t i e s among  sub-groups.  industrial  form of  settlements  p e r c e p t i o n of  chapter,  the responses  in order  to provide  will  s h o u l d have a c e r t a i n  another  of t h i s be  developed  dependent h i n t e r l a n d .  f o r e i g n investment  a c c e l e r a t e d the process  has  form.  analyzed  by  since FI  In t h e  impact helped  next  geographical  i n s i g h t t o the i s s u e .  areas  73  CHAPTER y RECEPTIVITY DIFFERENCES AMONG B.C. SUB-REGIONS 5.1.  Introduction The  and  n i n e economic s u b - r e g i o n s  characteristics  problems r e p r e s e n t a t i v e o f r e g i o n s i n v a r i o u s stages o f  development. and  i n B.C. have  From t h e Lower M a i n l a n d ,  economic a c t i v i t i e s  are heavily  sparsely populated north, these diversity  i n both  S i n c e each  should r e f l e c t  show t h e marked composition.  i t s own d e v e l o p m e n t g o a l s and e x p l i c i t ) which b e s t  responses  from d i f f e r e n t  differences  i n t h r e e ways.  i n attitudes  The r e s u l t s  toward  suit  sub-regions  regional preferences concerning F I .  chapter, regional approached  sub-regions  they are r a r e l y  characteristics,  concentrated, to the  and d e m o g r a p h i c  sub-region possesses  o b j e c t i v e s (though regional  geographic  where t h e p o p u l a t i o n  In t h i s  FI w i l l  should i d e n t i f y  be  some  c o r r e l a t i o n s between t h e s t a g e s o f r e g i o n a l d e v e l o p m e n t a n d social  receptivity Firstly,  rest  toF I .  responses  of the province w i l l  metropolis - hinterland since and  from  be a n a l y z e d  Secondly,  economic s u b - r e g i o n s w i l l  such as Frank,  attitudinal  with  Thirdly,  similar  a comparative  regional  developed  Myrdal,  differences  Hirschman, among n i n e  be compared w i t h Robock 'and  Simmonds'* U - c u r v e h y p o t h e s i s p r e s e n t e d chapter.  i n the context o f the  c o n c e p t w h i c h had been  t h e 1950's b y a u t h o r s  Friedmann.  t h e G r e a t e r Vancouver and t h e  i n the introductory  analysis  characteristics,  of three  two o f w h i c h  sub-regions have  74  already still out  observed inflows  i n an  latter  between t h e 5.2.  the  findings of  type of  another without FI  According  vs.  to  the  and  on  occurs Since  i n one  or  in fact of  o f d e v e l o p m e n t do are  metropolis-hinterland  vities  i n B.C.  relationship  not  economic spread  the  usually  strength.''"  evenly  over  centres,  most f r e q u e n t l y r e s u l t s  structures.  patterns  of population  i n d i c a t e s t h a t the still  of  an  to l i f t  development  i n t i m a t e l y r e l a t e d to urban  g r o w t h among r e g i o n s  distribution  In o r d e r  income l e v e l s ,  s e v e r a l growth p o l e s  these poles  The  by  (1958), i n t e r r e g i o n a l i n e q u a l i t y o f growth i s  polarization in  regions.  r e g i o n a l g r o w t h model p r e s e n t e d  economy t o h i g h e r  space but  of host  Approach  i n e v i t a b l e c o n d i t i o n o f growth i t s e l f . regional  be c a r r i e d  the r e l a t i o n s h i p  receptiveness  Hinterland  the  will  f  (and  second stage of a n a l y s i s .  a n a l y s i s focuses  amount o f F I  Metropolis  Hirschman  and  e a r l y stage of development)  b a s e d on  This  of FI  and  economic  acti-  metropolis-hinterland  e x i s t between G r e a t e r  Vancouver(-;Victoria)  2 and  the  r e s t of  the  reached a population  province. of  The  Greater  1,134,000 i n 1974,  Vancouver  region  which accounted  for  ^ The c o n c e p t o f " g r o w t h p o l e s " ("pole de c r o i s s a n c e " ) f o r b o t h r e g i o n a l and s e c t o r a l g r o w t h was f i r s t d e v e l o p e d by F . P e r r o u x ( 1 9 5 5 ) and t h e n by J.R. B o u d e v i l l e (1957). H i r s c h m a n ' s p o l a r i z a t i o n g r o w t h model p r e s e n t e d h e r e i s t h e d e r i v a t i v e o f t h i s c o n c e p t , w i t h an e m p h a s i s on s p a t i a l r a m i f i c a t i o n s of growth p o l e s . 2 I t has t o be c l e a r t h a t t h e two c o n c e p t s o f r e g i o n a l c o n c e n t r a t i o n ( o f income and p o p u l a t i o n ) and r e g i o n a l income per c a p i t a l d i f f e r e n t i a l s need not converge ( W i l l i a m s o n , 1965). Here, the former concept i s a p p l i e d i n e x p l a i n i n g r e g i o n a l i n e q u i t y w i t h i n the province of B.C.  75 4 7%  of the t o t a l  provincial  M a r k e t s 1974-75, p . 4 1 ) . the  gross  population of  The  1971  2,395,000  (Survey  c e n s u s showed t h a t 50%  v a l u e o f f a c t o r y s h i p m e n t s was  produced  in  of  of  the  3 m e t r o p o l i t a n Vancouver. represent As  Tertiary and  the r e g i o n a l economic  Davis's  revealed,  T h i s measurement, however, does  (1974) s t u d y the  r e g i o n ' s economy has  activity  Manufacturing,  with only  f o r n e a r l y 60% 19%  of the  the  orientation.  Finance,  Insurance  of the  economy's  o f r e g i o n a l employment,  economic  r e g i o n s , where t h e r a t i o s  region's  payroll.  accounts  s t r u c t u r e o f most o t h e r  o f primary.and  secondary  t h e r e g i o n a l economy a r e much h i g h e r ,  t h e B.C.  economy has The  e x p l a i n e d on  the h i s t o r i c a l  British d e p e n d e n t on  formation  of t h i s  relationship could  context  the  and  to prosper  fur trade  materials  from the r e g i o n .  resources  i n the  19th  that  i n the  ever  starting  been h i g h l y I t s economic  eighteenth  s i n c e by  Successive  century,  be  o f r e g i o n a l growth.  extractive industries.  growth began w i t h continued  industries  i t became a p p a r e n t  C o l u m b i a ' s r e g i o n a l economy has resource  sub-  the appearance of a major c i t y w i t h i t s  hinterland.  had  economy  of a l l exports.  Compared w i t h  in  Trade,  Services-comprises)two-thirds  account  4 9%  a strong t e r t i a r y  - T r a n s p o r t a t i o n and  R e a l E s t a t e , and  Vancouver.  of the m e t r o p o l i t a n Vancouver  employment and  for  structure i n Greater  not  century  exporting  e x p l o r a t i o n of  raw mineral  from c o a l e x t r a c t i o n  i n V a n c o u v e r I s l a n d i n 1836 w h i c h f o l l o w e d by g o l d , c o p p e r , 3 •fin 1971, g r o s s v a l u e o f f a c t o r y s h i p m e n t s o r i g i n a t i n g i n G r e a t e r V a n c o u v e r amounted t o $2,112,067,000, w h i c h a c c o u n t e d f o r 49.8 p e r c e n t o f t h e p r o v i n c i a l t o t a l v a l u e o f $4,235,968,000 ( S u r v e y o f M a r k e t s 1974-75, p . 4 5 ) .  76  zinc,  and  l e a d , e s t a b l i s h e d and  comparative  region's prosperity with  a  advantage.  When t h e  growth of a r e g i o n o c c u r s  r e g i o n a l m a r k e t demand f o r raw d e s c r i b e d by  the  export  due  to the e x t r a -  m a t e r i a l s , the growth p a t t e r n i s  b a s e g r o w t h model  (or a " s t a p l e  4 theory").  Entrepreneurs  resources.  The  completion  V a n c o u v e r i n 1889 and  brought  the resource  of the Canadian P a c i f i c  determined sites  exploit  Railway  to  t h e l i n k a g e between t h e m a j o r p o r t  i n the  as a t r a d i n g c e n t r e t h r o u g h exported  i n transportation to  interior  o f B.C.  w h i c h B.C.  raw  Vancouver  grew  m a t e r i a l s were  t o t h e U n i t e d Kingdom, t h e E u r o p e a n c o n t i n e n t and  U.S.A.  The  opening  a d v a n t a g e s o f B.C. S i n c e B.C.  o f t h e Panama C a n a l raw  had  m a t e r i a l s i n the  ment, t h e p r o v i n c e the resource  invited  intensive.  been b u i l t  as  "node" o r  such  market.  income b a s e w i t h economic  late  19th  foreign capital  heavy f o r e i g n investment.  t h e West C o a s t  i n the h i n t e r l a n d than  the r e s o u r c e  resource  frontier  region's  and  as  had  the the  exploitation  Today's economic  i n d i c a t e s t h a t the d i r e c t  for  century, Vancouver  " c e n t r a l p l a c e " o f t h e r e g i o n a l economy, w h i l e s u s t a i n e d by  a  develop-  w h i c h were h i g h l y c a p i t a l  a m a j o r u r b a n c e n t r e on  of the province greater  international  a large inflow of  From t h e  r e s t o f t h e p r o v i n c e was b a s e d on  to support  e x t r a c t i o n ventures  technology  f u r t h e r a c c e l e r a t e d the  a small p o p u l a t i o n or  limited basic infrastructure  the  impact  geography  of FI  i s g: •  i n m e t r o p o l i t a n Vancouver. economy i s e x t r e m e l y  Since  sensitive  4 I n t h e C a n a d i a n c o n t e x t , t h e c l a s s i c a l work on t h i s s t a p l e t h e o r y was done by H . I n n i s , The F u r T r a d e i n Canada; An I n t r o d u c t i o n t o C a n a d i a n E c o n o m i c H i s t o r y . "  to  f i l l u c t u a t i n g m a r k e t demand, e x t r a - r e g i o n a l  be  received  less  favourably i n local  investment  communities  than i n  m e t r o p o l i t a n V a n c o u v e r where t h e e c o n o m i c b a s e i s so I t was  hypothesized, therefore,  that  respondents  G r e a t e r V a n c o u v e r w o u l d be more r e c e p t i v e from the r e s t  might  diverse.  from  to FI than  those  of the province.  Findings Foreign  Investment  i n G e n e r a l : As  from m e t r o p o l i t a n Vancouver those  from  effects  the r e s t  as w e l l  as  was  expected,  respondents  showed more f a v o u r a b l e r e a c t i o n s  of the province concerning s o c i a l future d e s i r a b i l i t y TABLE  of FI  and  than  economic  (Table X V I I I ) .  XVIII  R e c e p t i v i t y D i f f e r e n c e s between G r e a t e r V a n c o u v e r and Rest of the Province  the  No. of S.3 S.5 S.6A S.7 Responses Agree Disagree Agree Disagree Agree Disagree Agree Disagree Greater Vancouver  187  53%  47%  87%  13%  81%  19%  59%  41%  Rest of B.C.  287  58%  43%  84%  16%  78%  22%  49%  51%  Statement  3. There i s too much f o r e i g n c a p i t a l being invested i n B.C. 5. In general, foreign investment has been b e n e f i c i a l to the economic development i n B.C. 6A.Foregin investment has improved the q u a l i t y of l i f e i n B.C. 7. B.C. needs more investment from f o r e i g n countries.  Almost  60%  of the respondents  from  the G r e a t e r Vancouver  r e g i o n wanted f u t u r e F I  i n the p r o v i n c e , while  half  i n t h e h i n t e r l a n d were n o t  of  of the respondents  it.  revealed  The  breakdown o f r e s p o n s e s  that  their  preferential  to the net  slightly  i n favour  effects  d i f f e r e n c e s were  over  of  FI  primarily  78  c a u s e d by  economic c o n s i d e r a t i o n s .  were s i m i l a r i n o p i n i o n s  concerning  t h e i r a t t i t u d e s toward n e g a t i v e different  local  as  t o B.C.  and  as m i n o r n e g a t i v e but  t h e s e two  hinterland from the to  tration as  major negative  lack of  d i s r u p t i o n of  local  In  i n the  believed  q u a l i t y of  a negative  indirect t o be  effect.  residents  that FI life,  The  p r o j e c t s was  residents  as  of  of  well  population perceived  Vancouver, those i n  66  contribute  named p o p u l a t i o n  d i s r u p t i o n of out  the  respondents  d i d not  also pointed  local by  r e l a t e d to  the  15  concencommunities  people  of  hinterland  associated the  On  negative  probably explains  in  the  future.  The  as  functional reality  the  other  their greater  way  the  concerns  in seem  the p r o v i n c i a l  residents of  life  of  the  and  local situation.  reluctance  implication i s that the  on  hand, t h e  effects within  the  to accept  spatial  metropolis-hinterland  s h i p c e r t a i n l y a f f e c t s t h e way FI.  residents'  F I w i t h t h e i r own  of  where most  i n economic terms - m a i n l y  economic impact o f F I  a whole.  perceived  only  i n the m e t r o p o l i s ,  employment o p p o r t u n i t i e s ,  economy as  of  resources  group.  affects=the  This  FI,  insufficient  c o m m u n i t i e s were  fact, one-third  These r e s u l t s suggest t h a t FI  effects in  i n v e s t m e n t . The  e f f e c t s o f F I by  h i n t e r l a n d , who  as  of  effects reflected slightly  i s s u e s were p a i d more a t t e n t i o n by  a r e s u l t of FI  this  and  (Table XIX).  improvement  contributions  from e x p l o i t a t i o n o f n a t u r a l  removal of p r o f i t s  concentration  the  groups  concerns.  Both groups p e r c e i v e d return  A l t h o u g h t h e s e two  people perceive  the  as  FI  well  relationeffects  79  TABLE XIX Perceived  Contributions  Investment:  Perceived  Metropolis  Contributions  and vs.  Total  45% 25%  195 96  48% 24%  42 33 10  14% 11% 3%  60 46 10  15% 11% 2%  Population Concentration I n s u f f i c i e n t Return to B.C. Removal of P r o f i t s / earnings Environmental P o l l u t i o n D i s r u p t i o n of L o c a l Communities Other  As  identical  social  effects B.C.  there  was  Japanese follow by  these  in  FI  21  9%  52  41%  88  37%  36 25  29% 20%  56 46  24% 20%  3 5  2% 4%  15 9  6% 4%  the  Investment:  concerning (Table  presented  in  set  i n B.C. by  the  or  two  groups  employment,  XX).  the  preference  operations  The  these  future  guidelines  results.  235  investment,  particular  business  the  4%  reactions  residents no  %(no./126) H i n t e r l a n d %(no./235) xlOO xlOO  5  Japanese  f o r Japanese  almost  among  407  126  Toward  %(no./407) xlOO  132 74  Metropolis  Total  Foreign  % (No./291) H i n t e r l a n d xlOO  291  Negative  attitudes  E f f e c t s of  Hinterland.  Metropolis  Employment Opportunities Income I n c r e a s e More Goods/ Commodities S o c i a l Amenities Other  Perceived Effects:  Negative  The  third  long  chapter  as  and  consensus that  toward they  g o v e r n m e n t was  l o c a t i o n factor of  political  general  hostility as  showed  would  again  residing in  the  confirmed  80  metropolis or i n i t s hinterland residents'  o p i n i o n s toward  TABLE R e a c t i o n t o Japanese  does n o t a f f e c t  Japanese  the  investment.  xx  Investment:  Metropolis vs. Hinterland  S.13 S.14 S.15 S.16 Agree D i s a g r e e Agree D i s a g r e e Agree D i s a g r e e Agree D i s a g r e e Greater Vancouver  82%  18%  Rest of B.C.  83%  17%  Statements  5.3.  The  The  19%  69%  31%  54.5%  45.5%  79%  21%  69%  31%.  56%  44%  13. Japanese b u s i n e s s i n v o l v e m e n t i n the p r o v i n c e has i n c r e a s e d d i r e c t o r i n d i r e c t employment o p p o r t u n i t i e s . 14. Japanese i n v e s t m e n t w i l l i n c r e a s e l o c a l employment o p p o r t u n i t i e s i n the f u t u r e . 15. I n c r e a s i n g Japanese investment i n B.C. i s l i k e l y t o cause p o l i t i c a l f r i c t i o n i n the f u t u r e . 16. I n c r e a s i n g Japanese i n v e s t m e n t i n B.S. i s l i k e l y t o cause s o c i a l f r i c t i o n i n the f u t u r e .  Differences  carried  .  81%  in Attitudes  out represent regions i n various stages of  d i s a g g r e g a t i o n of responses  desirability  of FI.  by  sub-region generated  Responses t o f o u r by  statements  s u b - r e g i o n as  s t r o n g e s t antipathy to e x i s t i n g  Thompson r e g i o n , m a i n l y f o l l o w e d by responses  responses  from  from t h e c i t y  from  the G r e a t e r Vancouver,  c  and  concerning  shown i n T a b l e  F I came f r o m  Vancouver  was  The  Island,  concern with the  XXI.  the  o f Kamloops, which  the C e n t r a l Kootenays.  Okanagan s u b - r e g i o n s showed l e s s  was  development.  i n perceptions of the e f f e c t s  i n g e n e r a l were g r o u p e d . The  Sub-Region  n i n e economic s u b - r e g i o n s i n which the survey  considerable variation  FI  by  and  existing  81  l e v e l of East in  f o r e i g n investment.  sub-region  the  respondents  i n d i c a t e d t h e most s u p p o r t  existence  of  the o v e r a l l  not  f o r e i g n investment  is relatively  r e g i o n a l economic s t r u c t u r e — the  province  yet reached high  of e x i s t i n g  FI  i s not  levels  negatived  K o o t e n a y s , Thompson, and  where t h e  respondents  with  felt  —  the On  followed  from Vancouver  positive  other  excessive  strongest  the  Okanagan and  where  I s l a n d , i n c l u d i n g the  Low  the  heavy the FI traced  came f r o m  Greater  Vancouver.  undesirability in early  desirability  responses from  w e l l i n d i c a t e t h a t t h e r e s i d e n t s a r e more  than e c o n o m i c a l l y - o r i e n t e d -in t h a t p a r t of the 7  perception  again  of urban c h a r a c t e r i s t i c s  to f u t u r e F I .  in  FI  amount o f  support  regions  the  least  hand, i n  t r e n d was  The  from the  i n the  proportion of  I s l a n d , where a s t r o n g  regions  receptivity  from Vancouver may  by  e x p r e s s e d /'the r e s p o n s e s  o f d e v e l o p m e n t and  and  respondents'  the  same r e c e p t i v i t y  to f u t u r e F I :  the North E a s t ,  was  The  an  -•- where  unimportant  Central sub-regions,  t h a t t h e r e was  province.  respect  Apart  FI  influence of  i n f l o w s o f F I have b e e n o b s e r v e d , a h i g h  the  North  for current  suggest t h a t i n urban c e n t r e s  developed p a r t of  in  from the  province.  These r e s u l t s  has  The  stages indicated expressed Victoria,  amenity-oriented province.  4  The o n l y e x c e p t i o n t o t h x s s t a t e m e n t i s t h e Thompson r e g i o n . The r e s p o n d e n t s f r o m K a m l o o p s , t h e t h i r d l a r g e s t c i t y i n t h e p r o v i n c e , showed n e g a t i v e r e a c t i o n t o b o t h e x i s t i n g and f u t u r e F I . T h i s c a n be e x p l a i n e d by t h e f a c t t h a t t h i s r e g i o n has o b s e r v e d h e a v y i n f l o w s o f F I and t h a t t h e r e s i d e n t s were more aware o f an e x c e s s amount o f F I t h a n t h o s e i n o t h e r u r b a n centres.  82  TABLE  XXI  R e g i o n a l D i f f e r e n c e s i n A t t i t u d e s Toward  Investment  Pnrpfrm  S.3 S.5 S. 6A S. 7 Agree Disagree Agree Disagree Agree Disagree Agree Disagree  Sub-Region E a s t Kootenay (25)*  60?i  40%  96%  40%  84%  16%  41%  59%  C e n t r a l and West K o o t e n a y (27)  70  30  70  30  56  44  33  67  Okanagan  50  50  75,  25  72  28  68  32  21  21  90  10  95  5  41  59  53  47  87  13  81  19  59  41  Vancouver I s l a n d (90)  52  48  81  19  72  28  42.5  57.5  Central  62  38  91  9  89  11  57  43  : 43  57  86  14  86  14  71  29  55  45  88  12  88  12  48  52  (36)  Thompson,(19) Greater Vancouver  (189)  (45)  North East North  (14)  West(32)  T h e r e i s t o o much f o r e i g n c a p i t a l b e i n g i n v e s t e d i n B . C . I n g e n e r a l , f o r e i g n i n v e s t m e n t has been b e n e f i c i a l t o t h e economic development i n B . C . S.6A F o r e g i n i n v e s t m e n t has i m p r o v e d t h e g u a l t y o f l i f e i n B . C . S.7 B . C . n e e d s more i n v e s t m e n t f r o m f o r e i g n c o u n t r i e s . * Numbers i n b r a c k e t s i n d i c a t e t h e number o f r e s p o n d e n t s . S.3 S.5  The  receptivity  coincide with introductory to  future  to  the  curve  the  trend  R o b o c k and  chapter  i[1.4;].  desirability  levels shown as  of  indicated  of  FI  ment were d e t e r m i n e d  6. by  In  this  analysis  Simmonds m o d e l p r e s e n t e d If,  for  are  plotted  development of  Figure  in  each  this  calculating  instancethe in  the  sub-region,  case, the  did  not  in  the  responses  graph they  according shape  the  levels  of  per  capita  value  a  developof  83  factory Market  shipments Data*.  i n each s u b - r e g i o n  CSee A p p e n d i x  N o r t h West f r o n t i e r value of factory  f  b a s e d on B r i t i s h  II for detailed  figures.)  shipments  and y e t t h e i r  FIGURE  by  needs  Economic  The  sub-region posesses the highest per c a p i t a r e c e p t i v i t y to  f u t u r e F I i s n o t as h i g h as i n a r e a s w i t h urban  "B.C.  Columbia  more  characteristics.  6  investment from f o r e i g n  countries.";  Sub-Region  Agree 100%|  North East  Low Note:  Okanagan . C e n t r a l / East Thompson Vancouver C e n t r a l North Greater West Kootenay Island West Vancouver Kootenays Stage of Development  High  P e r c a p i t a v a l u e o f f a c t o r y s h i p m e n t s was u s e d a s a n i n d e x t o determine the l e v e l s o f development o f each s u b - r e g i o n , e x c e p t f o r G r e a t e r V a n c o u v e r . S i n c e t h e G r e a t e r V a n c o u v e r economy h a s transcended secondary industry into having a strong t e r t i a r y o r i e n t a t i o n a s was e x p l a i n e d i n s e c t i o n 5 . 2 . , t h i s i n d e x was not r e l e v a n t t o d e s c r i b e i t s stage o f development.  84 In the B r i t i s h Columbia c o n t e x t , t h e r e f o r e , the r e g i o n a l difference  of receptiveness to FI  stages of development but w i t h (and t h e c o n c o m i t a n t activities)  i s c o r r e l a t e d not with  the degree o f u r b a n i z a t i o n  i n c r e a s e i n the complexity  i n each sub-region.  i t s receptivity  (North E a s t ) as  rapidly  and  to FI:  The  relatively  areas  highly urbanized  urbanized regions high receptivity  The  of the  least  ( C e n t r a l , and  heavily mining  concentrated and  invested regions  forestry.  i n these  hinterland, large  s e c t o r s are extremely  coincide with  inflows of FI.  central  areas  u r b a n c e n t r e and sub-regions  the  w h i c h have  Central  West K o o t e n a y s , E a s t K o o t e n a y s , and  existing FI.  amount o f F I  closely  e c o n o m i c b a s e depends on  by  capital sub-  situated  northern observed receptivity  regions, i . e . the  North  t h e r e l a t i o n s h i p between  i n each s u b - r e g i o n  These t h r e e s u b - r e g i o n s  each sub-region  frontier  the  are  represented  i n B.C.,  T a b l e X X I I f o c u s e s on  i n order to observe  Receptiveness  high, i n t e r i o r  among t h r e e r e s o u r c e s  and  and  foreign  differences  East,  sub9regions  complexity.  industries,  S i n c e t h e amount o f  between t h e Lower M a i n l a n d  showed  economic a c t i v i t i e s  in extractive  i n t h e K o o t e n a y s and  urbanized  Okanagan)  compared w i t h o t h e r  sub-regions'  U-curve  ( G r e a t e r V a n c o u v e r ) as w e l l  R e l a t i o n s h i p between t h e Amount o f FX  Many i n t e r i o r  economic  degree of u r b a n i z a t i o n  a t i n t e r m e d i a t e s t a g e s of d e v e l o p i n g economic 5.4.  of  In o t h e r words, the  h y p o t h e s i s h o l d s between a s u b - r e g i o n ' s and  the  and  the  receptiveness to  r e p r e s e n t a r e a s where  their  natural resource extraction,-and yet  i s i n the d i f f e r e n t  stage of r e g i o n a l development.  85  The  C e n t r a l and  West K o o t e n a y s r e p r e s e n t t h e  w h i c h I s f a c e d w i t h ?a s t a g n a t i n g economy due economic c o n d i t i o n o f m i n i n g K o o t e n a y s a r e one mainly  fastest  The  North  economically developed  expressed  The  responses  bitterness from  toward  economically  K o o t e n a y s , where m i n e r a l gone.  The  feeling  from  toward  these  foreign  foreign  B.C. world  potential  three areas investment  investment  depressed  showed in  their  responses  e x p l o i t a t i o n of coal activities Although  from  C e n t r a l and  responses  realized  "foreign  once t h e i r  the from  the  rather striking  were w e l l aware o f t h e  investment  created local  j o b s had  has  contribution  been b e n e f i c i a l  be  with to  the  o f them w a n t e d more interpreted  as:  They  employment o p p o r t u n i t i e s .  been secured,  more F I w h i c h w o u l d n o t g e n e r a t e  results.  (96% o f them a g r e e i n g  T h i s r e a c t i o n may  t h a t F I had  investment  t h e E a s t K o o t e n a y s , where  economic development  future.  and  enthusiasm.  e c o n o m i c d e v e l o p m e n t i n B . C . " ) , o n l y 41% i n the  West  d e p o s i t s h i g h l i g h t e d r e c e n t 'economic  most r e s p o n d e n t s  statement,  strongly  o n c e booming  t o new  i n the p r o v i n c e , p r e s e n t e d  of FI t o the  was  " r i p p e d - o f f " remained w i t h  c o u n t r i e s h a r d l y showed any The  But  in  enormous r e s o u r c e  e x t r a c t i o n was  of being  r e s i d e n t s and  foreign  FI  East  sub-regions. The  the  the  t o meet t h e demand o u t s i d e o f i t s  marked p e r c e p t u a l d i f f e r e n c e s  local  while  growing areas  E a s t p r o v i d e s an  r e g i o n a l boundary.  their  to the u n c e r t a i n  b e c a u s e o f t h e i n c r e a s i n g demands f o r coal-in-«the  market. t o be  of the  activities;  region  any  they direct  d i d n o t want  any  b e n e f i t s f o r the  86  individuals in  i n the l o c a l  communities.  the r e s o u r c e f r o n t i e r ,  If this  people's world  i s the case,  seems t o c e n t r e on  themselves. Q u i t e c o n t r a r y t o the responses from were t h o s e  from  respondents  the North E a s t .  from t h i s  t o a c c e p t F I , showing creation social  effect.  the  i n mining,  T h e y were n o t t o o c o n c e r n e d  about  potential  investors. f u t u r e FI i n the  i n f l o w s of American  and  Japanese  investors  and by  benefits capital  are coupled with the favourable a t t i t u d e s  Receptiveness to future related  the host  foreign  investment  to the e x i s t i n g  region.  i n mind  t h e s e n i o r g o v e r n m e n t . When  North E a s t , i t leads to another r e c e p t i v i t y  in  willingness  lumber and p u l p o p e r a t i o n s , s h o u l d be b o r n e  such doubts  inversely  i n favour,  i n s p i t e o f t h e r e c o g n i t i o n o f economic  from r e c e n t l a r g e  regions  a h i g h e x p e c t a t i o n " o f ' t h e employment  l a c k o f r e c e p t i v e n e s s toward  Kootenays,  potential  Overwhelmingly  sub-region indicated  f r i c t i o n with foreign The  t h e s e two  i n the  paradigm: i s frequently  l e v e l o f such  investment  87 TABLE XXII Regional D i f f e r e n c e s i n A t t i t u d e s Toward F o r e i g n Investment: By S e l e c t e d Sub-Region Agree  Disagree  A. There i s too much f o r e i g n c a p i t a l being i n v e s t e d i n B.C. No.of Responses C e n t r a l Kootenays 27 E a s t Kootenays 25 North E a s t 14  70% 60% 43%  (19) (15) ( 6)  30% 40% 57%  ( 8) (10) ( 8)  70% 96% 86%  (19) (24) (12)  30% 4% 14%  ( 8) ( 1) ( 2)  56% 84% 86%  (15) (21) (12)  44% 16% 14%  (12) ( 4) ( 2)  33% 41% 71%  ( 9) ( 9.)  (10)  67% 59% 29%  (18) (13) ( 4)  74% 88% 93%  (20) (22) (13)  26% 12% 7%  ( 7) ( 3) ( 1)  65% 84% 93%  (17) (21) (13)  35% 16% 7%  ( 9) ( 4) ( 1)  B. In g e n e r a l , f o r e i g n investment has been b e n e f i c i a l t o the economic development i n B.C. C e n t r a l Kootenays E a s t Kootenays North E a s t C. F o r e i g n Investment has improved the q u a l i t y o f l i f e i n B.C. C e n t r a l Kootenays E a s t Kootenays North E a s t D. B.C. needs more investment from foreign countries C e n t r a l Kootenays E a s t Kootenays North E a s t E. Japanese b u s i n e s s involvement i n the p r o v i n c e has i n c r e a s e d d i r e c t or i n d i e c t employment o p p o r t u n i t i e s . C e n t r a l Kootenays E a s t Kootenays North E a s t F. Japanese investment w i l l i n c r e a s e l o c a l employment o p p o r t u n i t i e s i n the f u t u r e C e n t r a l Kootenays E a s t Kootenays North E a s t  88 Agree G.  I n c r e a s i n g Japanese investment i n B.C. i s l i k e l y t o c a u s e p o l i t i c a l f r i c t i o n i n the f u t u r e C e n t r a l Kootenays East Kootenays North East  H.  Disagree  81.5% 72% 71%  (22) (18) (10)  18. 5% ( 28% ( 29% (  63% 64% 36%  (17) (16) ( 5)  37% 36% 64%  5) 7) 4)  I n c r e a s i n g Japanese investment i n B.C. i s l i k e l y t o c a u s e s o c i a l f r i c t i o n i n the f u t u r e . C e n t r a l Kootenays E a s t Kootenays North East  Implications  of  these r e s u l t s are  quite  clear.  (10) ( 9) ( 9)  The  traditional  a p p r o a c h t o r e g i o n a l d e v e l o p m e n t g e n e r a t e d by  FI  will  f a v o u r e d by  where  the  The  North  not  be  impact of East  of  coking  future  B.C.  has  coal.  the  bituminous c o a l  The  deposits  economy.  of  the  the  region  also  by  the  survey,  F I must be  suitable  the  government announced  the North E a s t ,  f o r c h a n g e s t o be  providing  for  develop stagnating  i t s intention i t is  The  likely  high  indicated  in  brought i n  to  met.  p o l i c y makers, b o t h i n the  consider  the  impetus to r e v i t a l i z e  residents" of  responses to the  should  an  c o a l development would i n v o l v e F I .  the  The  felt.  foreign p a r t i c i p a t i o n i n t h i s venture,  new  expectation  of  directly  p r o v i n c i a l government i s a n x i o u s t o  Since  the  region  vast  provincial  that  the  be  as  inviting  of  development w i l l  these coal resources  of  residents  not  only  s o c i a l b e n e f i t s w h i c h aim  p u b l i c and  private  sectors,  d i r e c t economic b e n e f i t s  but  a t enhancing the i n d i v i d u a l  89  welfare  of  maintain  local  r e s i d e n t s , i f t h e y want t o i n c r e a s e o r  present  receptiveness to FI.  recommendations b o t h investors w i l l  be  f o r the p r o v i n c i a l  discussed i n order  r e l a t i o n s h i p between the e x i s t i n g receptiveness 5.5.  Regional to the in  i n the host  Summary and  social  this  receptivity  chapter  clearly  the  i s s u e s o f F I , as  problems i n the  on  the people  localized  On  B.C.  with North  with  the  another  from the  analysis factor  regarding the  Vancouver  economic b e n e f i t s o f F I  than  T h e y were a l s o q u i t e r e c e p t i v e r e s i d e n t s o f most  more c o n c e r n e d  urban c h a r a c t e r i s t i c s .  responses.  The  urban c e n t r e of  by  with  resource  The  social  FI, reflecting towns.  r e g i o n s , r e c e p t i v e n e s s t o F I was  E a s t showed t h e  insight  are prone t o p e r c e i v e  the net  residents in isolated  their  future  residents' opinions  c o n t r a r y , the  seemed t o be  t o move a h e a d , and in  l e v e l o f F I and  inverse  situation.  economic development generated  frontier  this  differences provided  from the h i n t e r l a n d .  of the  to a l t e r  foreign  i n d i c a t e s that the g e o g r a p h i c a l  impact  w e r e more c o n c e r n e d  sub-regions  g o v e r n m e n t and  region.  In g e n e r a l , respondents  future FI.  chapter,  awareness toward f o r e i g n investment.  a significant  to  final  Conclusion  has  those  In t h e  even  interior  aspect  the  mentality  In t h e s e  lower  than  favourable responses  eagerness of the  least  developed  e c o n o m i c f a c t o r s were g i v e n  the  of  resource  areas from  the  region  priority  90 In B r i t i s h Columbia, of  receptiveness to FI  urbanization  of these  therefore  inversely  investment  i n the host  the r e g i o n a l  seems t o c o r r e l a t e w i t h sub-regions.  frequently  f  r e l a t e d t o the region.  At  the  difference  the degree  same t i m e ,  e x i s t i n g l e v e l of  of  i t is such  91 CHAPTER  VI  FUTURE ROLE OF FOREIGN DIRECT INVESTMENT IN BRITISH COLUMBIA - CONCLUSIONS AND IMPLICATIONS This be  chapter  sets out  drawn f r o m t h e  chapters governing 6.1.  and  findings presented  examines t h e i r  FI  in British  Synopsis The  the main c o n c l u s i o n s which  of Major  i n the  can  preceding  three  i m p l i c a t i o n s f o r government  policy  Columbia. Findings  a n a l y s i s undertaken  i n the  study  points  to the  following  s i x major f i n d i n g s : (1) establish to the the  One  o f the  the  l e v e l o f a w a r e n e s s o f B.C.  issue of  f o r e i g n investment.  understanding  situation (2)  i n the  that  Contributions but  of f u r t h e r FI  The  of FI  of FI  satisfactory.  teria  (such  levels),  as  their  interpreted  and  possessed  that a  l o c a l business  p a s t b e n e f i t s o f FI the  present  pattern  i n terms o f  economic  cri-  higher  income  t o w a r d f u t u r e i n v e s t m e n t may  i n d i f f e r e n t ways.  from  a majority of respondents  p r o v i s i o n o f employment and  reluctance  not  This result indicates  residents, apart  groups, the  Since  development  r e s p o n d e n t s were  i n their regions.  and  the  respect  analysis revealed  t o r e g i o n a l economic  almost h a l f of the  metropolitan  perceived  to  knowledge o f t h e f o r e i g n i n v e s t m e n t  f o r a s i g n i f i c a n t p o r t i o n o f B.C.  i s not  was  province.  were h i g h l y v a l u e d favour  and  study  residents with  r e s p o n d e n t s were g e n e r a l l y w e l l - i n f o r m e d  basic  in  primary o b j e c t i v e s of the  One  be  interpretation i s that  the  92  people thought  the economic b e n e f i t s generated by F I were not  d i s t r i b u t e d e q u i t a b l y under the c u r r e n t investment p a t t e r n . Another i s t h a t B r i t i s h Columbians' development g o a l s have been changing w i t h more emphasis on non-economic c r i t e r i a . A f i n a l i n t e r p r e t a t i o n i s t h a t the people d i d not want any F I simply because they had secured t h e i r own j o b s , which might have been d i r e c t l y o r i n d i r e c t l y the r e s u l t o f F I , and thus p e r c e i v e d the i s s u e s f f o n u a s t r i c t l y i n d i v i d u a l w e l f a r e viewpoint. (3) Unequal d i s t r i b u t i o n of b e n e f i t s a c c r u i n g from FI among the p o p u l a t i o n was one o f the major causes o f o p i n i o n discrepancies.  In B r i t i s h Columbia, where F I i s p a r t i c u l a r l y  c a p i t a l - i n t e n s i v e i n n a t u r e , l a b o u r ' s share o f the v a l u e added may be r e l a t i v e l y  small i n comparison w i t h t h a t enjoyed by the  owners o f the c a p i t a l .  T h i s c a p i t a l - i n t e n s i v e nature o f F I ,  t h e r e f o r e , o f t e n exacerbated  s p a t i a l and s o c i a l  Opinion d i s c r e p a n c i e s between the respondents  inequities.  from the metro-  p o l i s and those from the h i n t e r l a n d , between p r o v i n c i a l  business  l e a d e r s and the union group, between white c o l l a r and b l u e c o l l a r workers, and among v a r i o u s groups by income l e v e l , a l l suggest t h a t the problem o f d i s t r i b u t i o n o f b e n e f i t s , i s a major f a c t o r determining t h e i r r e c e p t i v e n e s s t o F I . (4)  The p r o v i s i o n o f employment was a c r i t e r i o n f o r  j u d g i n g the b e n e f i t s o f F I .  The l e s s f a v o u r a b l e a t t i t u d e s  toward f u t u r e F I expressed by women, the grouppwith  l e s s formal  education, younger c o h o r t s , the o l d timers i n the p r o v i n c e , may w e l l r e f l e c t the s t r u c t u r a l unemployment problem which p r e v a i l s i n many resource f r o n t i e r r e g i o n s .  93 (5) The a n a l y s i s o f r e s p o n s e s lead  by e c o n o m i c  to. t h e f o r m a t i o n o f t h e f o l l o w i n g d e v e l o p m e n t  In the urban growing  c e n t r e o f G r e a t e r Vancouver,  Okanagan and C e n t r a l  of FI i s r e l a t i v e l y  where t h e i m p a c t respondents!  and i n t h e l e a s t  and V a n c o u v e r I s l a n d  inversely in  developed North East  from  the  positive.  t h e Kootenay,  r e g i o n s and t h e i r  l o w e r . The s p a t i a l  to future  related  t o F I were  — ,  —  Thompson,  s u b - r e g i o n s were a c u t e l y aware o f an  amount o f F I i n t h e i r  receptiveness  regional  o f F I has n o t y e t r e a c h e d h i g h l e v e l s  a w a r e n e s s and r e c e p t i v i t y  f u t u r e F I was  and t h e r a p i d l y  i n the o v e r a l l  On t h e o t h e r h a n d , t h e r e s p o n d e n t s  excess  paradigm:  s u b - r e g i o n s ••— where t h e e x i s t e n c e  unimportant  economic s t r u c t u r e — ,  to  sub-regions  foreign  approach  favourability  also revealed that  i n v e s t m e n t was  to the e x i s t i n g  level  frequently  o f such  investment  the host r e g i o n . (6)  The r e s p o n d e n t s  w i t h r e s p e c t t o Japanese the f a c t  that  were k n o w l e d g e a b l e investment  and o b s e r v a n t  i n the province..  i n g e n e r a l t e r m s low d e s i r a b i l i t y was  Despite  expressed  i  for  future F I , a m a j o r i t y of respondents  i m p r e s s i o n s toward as w e l l  as toward  indicates  Japanese  possessed  business people  their organizational  i n their  structure.  t h a t t h e B.C. r e s i d e n t s ' m a j o r c o n c e r n  " f r o m what c o u n t r y " b u t "how"  and, t o a l e s s e r  t h e i n v e s t m e n t w o u l d be made. ment t o d i r e c t  such  The g r o w i n g  i n v e s t m e n t was  desired  Survey.  equitable distribution  communities  This  reaction  i s not over  e x t e n t , " i n what"  role  of the govern-  and t h e  o f development s t r a t e g i e s which would u t i l i z e increase  favourable  importance  FI i n order to  o f b e n e f i t s was  c o n f i r m e d by t h e  94 6.2.  S i g n i f i c a n c e and I m p l i c a t i o n s  of the Findings  From t h e v i e w p o i n t o f a t t a i n i n g n a t i o n a l o b j e c t i v e s , most e c o n o m i c a n a l y s e s , have come o u t i n f a v o u r i n Canada.^ a  in  aspirations.  concerning  British  various  to foreign  be s e n s i t i v e t o p r o v i n c i a l i n t e r e s t s  The m a j o r f i n d i n g s o f t h i s  s e c t i o n 6.1. r e p r e s e n t  preferences  f e d e r a l system ensures, t o  degree, that p o l i c i e s with respect  i n v e s t m e n t and ownership w i l l and  b o t h p u b l i c and p r i v a t e ,  o f t h e n e t economic b e n e f i t s o f F I  However, t h e C a n a d i a n  significant  economic  study  Columbians'  issues  summarized  i n t e r e s t s and  of FI i n their  respective  regions. Within  t h e p r o v i n c i a l framework, how f o r e i g n  would be d i s t r i b u t e d g e o g r a p h i c a l l y be  distributed to societal  and how i t s b e n e f i t s  Geographical Implication:  developing Since  The o b s e r v a t i o n  region  should  be g r e a t e r  o f the North East  of attitudinal the r e l a t i v e  i n urban" c e n t r e s  than  in interior  t h e major a t t r a c t i o n f o r f o r e i g n i n v e s t o r s  resources,  and s i n c e  and t h e  sub-regions.  i s natural  d e v e l o p m e n t i n e v i t a b l y o c c u r s where  resources  exist, i ti s likely  attracted  to the Northern resource  also  Columbia.  among B.C. s u b - r e g i o n s s u g g e s t s t h a t  "future F I ' q u o t i e n t s  would  s u b - g r o u p s seem t o b e t h e a s p e c t s  o f most c o n c e r n t o t h e p e o p l e o f B r i t i s h  variations  investment  that  t h e r e g i o n where r e c e p t i v e n e s s  future FI w i l l frontier  be  region.  strongly This i s  t o future FI i s the highest  among a l l s u b - r e g i o n s . ^ F o r e x a m p l e , t h e G r a y R e p o r t (1972), a t h o r o u g h r e v i e w o f F I i n Canada, c o n c l u d e d t h a t f o r e i g n i n v e s t m e n t has a r o l e t o p l a y i n C a n a d a ' s f u t u r e e c o n o m i c d e v e l o p m e n t where i t i s t h e most e f f i c i e n t t e c h n i q u e o f o b t a i n i n g t e c h n o l o g y , o r o t h e r needed i n p u t s . ( F o r e i g n D i r e c t Investment i n Canada: p.451).  95 This in  preference,  a broader time p e r s p e c t i v e .  the to  geographical  amount o f  e x i s t i n g FI  with  capital.  foreign  public  and  the  the  host  investors  private  receptiveness identify  This  to  sectional  sectors  foreign  to  increase  investment,  The  accumulated  past  experiences  or  even  i t is essential  their  r e s u l t s of  If  both  maintain to  people  demographic  i n chapters  unequal d i s t r i b u t i o n of  three  benefits  among l o c a l  changing development goals influence  and  of  the  way  cross-s four  from F I ,  residents  d i s s a t i s f a c t i o n with FI.  sub-groups, changes which  i s one  T h e r e was among  including of also  several  they value  FI  regions. problem of  equitable  g e n e r a t e d by  FI  e c o n o m i c and  social  the  following into  that  has  entirely satisfactory.  intend  analysis presented  i m p l i c a t i o n of  both  receptiveness  r e c e p t i v i t y trend  s o u r c e s of-*dissatis'£action among t h e  major causes o f  The  that  and  r e c i p i e n t region  were n o t  employment o p p o r t u n i t i e s ,  in  the  r e l a t i o n s h i p between  region  phenomenon i m p l i e s  Implication:  suggest that  an  host  considered  region.  Social  the  inverse  indicates  g o e s downward o v e r t i m e as foreign  The  i n the  such investment c l e a r l y  however, s h o u l d be  public  s h o u l d be  considered  criteria.  and . p r i v a t e  section  i n order  a clear policy  d i s t r i b u t i o n of  i n terms  of  Specific"recommendationslfor  sectors to b r i n g  framework.  both  benefits  will  be  made i n t h e  these problems  f  identified  96  6.3.  Recommendations f o r t h e P r o v i n c i a l Government and F o r e i g n Investors,  This  s e c t i o n s e t s o u t some r e c o m m e n d a t i o n s b a s e d on t h e  implications  o f the survey  findings both f o r the p r o v i n c i a l  g o v e r n m e n t and f o r e i g n i n v e s t o r s . 6.3.1.  Recommendations Strategies  f o r t h e P r o v i n c i a l Government  f o r coping  with  two  ways, n a m e l y , t h e n e g a t i v e  the  p o s i t i v e approach.  f u t u r e F I cbuld^be approached i n  (or r e s t r i c t i v e )  Negative o r R e s t r i c t i v e Approach: use by  of public i n i t i a t i v e restrictive  some i n d u s t r i a l  suggests  f o r r e - d i r e c t i o n of investment  of l e g i s l a t i o n  categories  limiting  i n Ontario,  patterns  - although  foreign control of  M a n i t o b a , and A l b e r t a ,  a r e no p r o v i n c i a l l a w s w h i c h l i m i t  Canadian firms  approach  measures such as t h e e n f o r c e m e n t o f F I g u i d e l i n e s .  With the exception  there  This  approach and  foreign control of  some h a v e l e g i s l a t i o n a f f e c t i n g  2 ownership of land. The  former p r o v i n c i a l government p a s s e d d i s c r e t i o n a r y  legislation  providing  f o r a greater  minerals  and f o r e s t p r o d u c t s .  intended  t o i n c r e a s e n e t e c o n o m i c r e t u r n s , was t h e f i r s t  in  l e g i s l a t i o n , w h i c h was  r e - d i r e c t i n g t h e f o r e i g n investment/pattern  resource of  This  degree o f p r o c e s s i n g o f  ventures  raw m a t e r i a l s  i n B.C. prior  In f a c t ,  to export  step  involved i n  u p g r a d i n g and p r o c e s s i n g  was s u p p o r t e d b y n i n e  out of  2 B r i t i s h Columbia, A l b e r t a , Saskatchewan, Manitoba and O n t a r i o now l i m i t o r p r o h i b i t t h e s a l e o f Crown l a n d t o n o n r e s i d e n t s . I n P r i n c e Edward I s l a n d , t h e r e i s a t e n a c r e l i m i t a t i o n on a l l l a n d p u r c h a s e s b y p e r s o n s n o t r e s i d e n t i n t h e province.  97  ten  respondents  for  this As  stated or  the  survey,  establishment  investment, their  some  of  would  of  the  be  imposed  showing  on  accruing The  run  the  their  public the  income  of  strong  support  framework  every  of  also  economic  to  ownership this  attractiveness  should  establishment ensure  r e d i s t r i b u t i o n goals  incoming  respondents  regulations  government  has  for  However,  the  i f excess  the  ten  majority  FI.  reducing  resources,  to  sector  out  of  The  of  prior  legal  control  risk  investors.  FI  a  e i t h e r Canadian  environment  advantage  from  meet  for  of  one  government  investment  comparative  almost  support  form  approach  will  the  policy. for  foreign  in  were  weigh  costs  to  the  and  benefits  of  such  guidelines.  that  such  guidelines  identified  in  this  study. Positive  Approach:  however,  how  societal  groups  the If  the  residents the  the be  survey given  among for or  benefits  rather  results  local  foreign could  increase  the  for  joint level  that  distributed  aspect  of  most  legislation  FI  can  to  provide  The  suggested  in with  satisfaction  control  in  the  consideration  government the  could  FI  among  the  FI.  future, should  projects  recommend  following  investors  among  necessary  development  more  to  concern  d i s t r i b u t i o n e f f e c t of  initiative of  framework,  be  strict that  provincial  could  industrial  benefit  investors  the  FI  the  suggest  residents.  take the  than  decides  inputs  to  of  seems t o be  government  development  Within  policies  sub-section,  i n order  to  population.  98  The for  public sector  regions  most  social  factors.  social  needs  Since  -  can  directly The  remedial  social  community  of  women  well  solving where  approach  past  programmes medical  FI  between  and  (1)  senior with  residents'  the  local  opinions  which  programmes  satisfaction  6.3.2.  should order the  may  modify to  increase  host  of  local and  provide  the  may  housing,  investment  The  following  consul-  systematizing overall communities,  of a l l new  between  migrants.  local  increase of  levels  future.  Investors  indicate  that  strategies to  the  channels  needs  the  tangible  considered.  r e s i d e n t s and  help  FI  education,  and(2)  r e s i d e n t s i n the  study  and  i n resource the  past  concerns  residents; prior  process,  -.  regions  Specific  information  for  for Foreign  backlog  problem  in  provision for  planning  old  the  incorporate  infrastructure  local  of  be  on  with  residents, this  should  receptiveness  region.  one  eradicate frictions  among  their  t o be  should  planning  facilities  occured  heaviest.  and  i n v e s t o r s and  findings of  fulfil  p r o v i s i o n of  including  Recommendations  The  in  and  the  establishment  should  should  which  activities  i n the  emphasis  s t r o n g l y recommended  approach  social  sub-groups  communities  the  time  communities;  strengthening  of  to  governments  of  These  be  social  strengthening  societal  old  i n f l o w s were  expansionary  programmes;  as  should  relating  care,  The  tation  as  seemed  in  more  s e r v i c e s and  facilities  in local  initiative  with  approach  social  projects local  i t s own  affected  inadequate  overloaded  take  their  foreign investors  i n s e v e r a l ways business  following policies  are  in  operations  recommended  99  to achieve (1)  The  this.  i n t e r n a l i z a t i o n of corporate  profits  There were i n d i c a t i o n s t h a t p a r t of the with  f o r e i g n investment o r i g i n a t e d i n the l a c k of  of c o r p o r a t e i n resource  p r o f i t s w i t h i n the p r o j e c t r e g i o n .  internalization  Especially  f r o n t i e r r e g i o n s , p r o v i s i o n of s o c i a l s e r v i c e s  should be c o n s i d e r e d toward f u t u r e F I .  means of improving the c l i m a t e of  P o s s i b l e s e r v i c e s which c o u l d be  by the i n v e s t i n g c o r p o r a t i o n (a)  dissatisfaction  opinions  provided  are:  J o i n t development df i n f r a s t r u c t u r e The  p r i v a t e s e c t o r can take p a r t i n p h y s i c a l i n f r a s t r u c t u r e  development, such as r e c r e a t i o n a l and c o n s t r u c t i o n , and  so f o r t h .  p l a n , w i t h the c o - o p e r a t i o n purpose road,  e.g.  social f a c i l i t i e s ,  road  For i n s t a n c e , the i n v e s t o r c o u l d of the p u b l i c s e c t o r , the  to work and  dual  to r e c r e a t i o n s i t e , i n order  to i n c r e a s e s o c i a l o p p o r t u n i t i e s f o r workers. (b)  Increase  of employment o p p o r t u n i t i e s and  reduction  of  employment mismatch The  r e d i s t r i b u t i o n of employment o p p o r t u n i t i e s among  the l o c a l p o p u l a t i o n  i s another p o s s i b l e i s s u e t h a t i n v e s t o r s  should  Although the c a p i t a l - i n t e n s i v e nature  investigate.  of most resources  i n d u s t r i e s may  not be a l t e r e d i n the  run, some m o d i f i c a t i o n s c o u l d take p l a c e to i n c r e a s e intensity. resources The  short-  labour  Jobs r e l a t e d t o l o g g i n g and p r o c e s s i n g of  mineral  are the examples f o r t h i s p o l i c y . i n c r e a s e i n employment o p p o r t u n i t i e s should  d i r e c t e d to t a r g e t groups i n l o c a l communities. The manpower problems i n resource  f r o n t i e r s are those of  be major  100  structural pation  unemployment,  represented  r a t e a n d t h e unemployment  population.  Programmes  should  employment m i s m a t c h i n o r d e r of  jobs  b y a low f e m a l e  partici-  o f t h e u n s k i l l e d and t h e n a t i v e  be i n i t i a t e d  t o reduce  this  t o a t t a i n more e q u i t a b l e d i r e c t i n g  t o previously defined  t a r g e t groups.  i n programmes  The i n v e s t o r  can  take the i n i t i a t i v e  s u c h as j o b s  for  t h e u n s k i l l e d , l e s s e d u c a t e d , a n d women, o r o r g a n i z i n g  town m e e t i n g s a n d women's m e e t i n g s t o d i s c u s s opportunities the  strongly  t o t h e j o b market.  recommended  the major causes the (c)  possible job  f o r t h e groups.who, i n t h e p a s t ,  opportunity  This  d i d n o t have  employment p o l i c y i s  f o ra l l investors, since this  f o r opinion  training  discrepancies  i s one o f  t o w a r d F I among  B.C. r e s i d e n t s . I n t e r - r e g i o n a l Manpower m o b i l i z a t i o n - v e r t i c a l of  workers  Natural  resource-based  to the n a t u r a l tertiary  resources  activity  of Vancouver. T h i s labour  integration  i n d u s t r i e s i n e v i t a b l y develop  themselves, while  t e n d s t o be c o n c e n t r a t e d activity  pattern  f o r c e , i . e . white c o l l a r  metropolis resource  and t h e b l u e  theirc associated i n the nodal  centre  r e s u l t s i n the dichotomized  and m a n a g e r i a l  staff  i n the  c o l l a r work f o r c e i n t h e i s o l a t e d  f r o n t i e r where l e s s u r b a n a m e n i t i e s  and s e r v i c e s a r e  obtainable. This  unbalanced d i s t r i b u t i o n  a l t e r e d b y means o f v e r t i c a l w o r k e r s and t e c h n i c i a n s multinational  near  o f labour  f o r c e c a n be  i n t e g r a t i o n of white  i n the operating, region.  corporations  prefer  collar Although  to l o c a t e i n primate  urban c e n t r e s information, and  i n order t o take f u l l communication  other benefits  necessary  advantage o f urban  s y s t e m s , as w e l l  of agglomeration;  services  i f t h e government  i n f r a s t r u c t u r e , s u c h as an e f f i c i e n t  n e t w o r k and an i n f o r m a t i o n - c o m m u n i c a t i o n could  as  be r e l o c a t e d  transportation  s y s t e m , some  c h a n g e w h i c h was  force  be  as a k e y f a c t o r f o r d e c e n t r a l i z a t i o n o f  functions.  instance,  site  The i n - m i g r a t i o n  the developing  migration  filing_  region  of highly-paid  would r e q u i r e  of the labour  force  i s a high  this  i n the could  managerial  system.  be staff  facilities  I f the v e r t i c a l  sector  i t would  i n the l o c a l  female p a r t i c i p a t i o n r a t e  p o l i c y should  organi-  system, f o r  more u r b a n  o f white c o l l a r workers took p l a c e ,  Since there  could  through the s e l e c t i v e i n -  expansion o f the urban s e r v i c e  sector,  i n turn,  i n the hinterland  the above-mentioned communication  integration  the  T h r o u g h a computer  and t h e o p e r a t i n g  facilitated.  and  process,  c o m m u n i c a t i o n s between t h e h e a d q u a r t e r s  metropolis  to  i n the urbanization  the major d r i v e o f  centripetal  zational  functions  to the f r o n t i e r .  Here, t e c h n o l o g i c a l  utilized  provides  increase  induce economy.  i n the service  the job o p p o r t u n i t i e s f o r  l o c a l women. (2)  Joint Initiatives  t o be t a k e n w i t h t h e p u b l i c  Most o f t h e a f o r e m e n t i o n e d p o l i c i e s be The (a)  implemented w i t h o u t t h e c o - o p e r a t i o n joint public  cation  initiative  sector  and programmes c a n n o t of the p u b l i c  s h o u l d a l s o be t a k e n i n a r e a s  sector.  such a s :  h e a r i n g s - i n o r d e r to, open a c h a n n e l o f communi-  among  senior  and l o c a l  governments, f o r e i g n  investors,  102 and  local  residents,  ecological 6.4.  impact  and  studies  economic  largely  depended  natural  resource base  economic  British  FI  projects.  —  t h e framework  —  by which et.al.)  foreign  i n shaping  free  of a  economic  have  Columbia  has  of the province's  i n a laissez-faire,  Pearse,  role  in British  the exploitation  Within  Columbia  enterprise  "staple"  theory  historians  e x p l a i n e d t h e growth  investment  the present  has p l a y e d  economic  a  geography  the province. However,  primary  development.  residents'  on an a n a l y s i s  more,  i t has attempted goals  diversity general dents  among  of the future This  thesis  past  among  to identify  of FI i n  has attempted foreign  skills)  from  a significant  sources  identify  investment,  results.  of the population.  I f ,realistically,  to  Further-  various underlying  experiences with  on e x t r a - r e g i o n a l managerial  role  requirements  of questionnaire survey  sub-groups  consensus  i s that  the preservation of  domestic  o f p r e f e r e n c e has emerged  satisfactory. rely  over  preferences concerning  based  ment  concern  for anticipated  a reassessment  provincial B.C.  increasing  resources  suggests  and  t o undertaking major  development  development  Shearer,  significant of  upon  climate.  economic  (Innis, of  prior  socio-economic-  Conclusion Regional  of  (b) t h e p r e p a r a t i o n o f  Although  the analysis,  portion  the province  (e.g.capital,  a  the  o f the respon-  F I were n o t  f o r i t s economic  develop-  entirely  s t i l l  labour,  growth,  has t o technology,  the findings  103 of this  study suggest  modified both through  that investment  p a t t e r n s s h o u l d be  i n t e r m s o f e c o n o m i c and n o n - e c o n o m i c  the j o i n t  initiatives  criteria  o f government, and o f f o r e i g n  investors. Foreign B.C.  investment  residents  to r e d i r e c t  c o u l d have a p o s i t i v e  i f both the p u b l i c  and p r i v a t e  t h e i r development p r i o r i t i e s  n e e d s and w a n t s i n d i c a t e d  i n this  study.  "when t h e p e r s p e c t i v e [ o f n a t u r a l by  [political  people  parties]  and o u g h t  in  this  province".  provincial  to t h i s  in  British  attempt  i n o r d e r t o meet t h e Black  (1968)  stated;  resource exploitation]  adopted  to the  f o r t h e i r benefit, the  remained  unasked and unanswered  identified  development w i t h t h e a i d o f f o r e i g n i n this  thesis,  s h o u l d p r o v i d e an answer  q u e s t i o n and c o n c e i v a b l y be u t i l i z e d  determinants  among  The p e o p l e ' s g o a l s a n d o b j e c t i v e s f o r  industrial  investment,  sectors  was t h a t t h e r e s o u r c e s b e l o n g  t o be d e v e l o p e d  q u e s t i o n Which P e o p l e ?  receptivity  of the future d i r e c t i o n Columbia.  a s one o f t h e  o f economic  development  104 LITERATURE CITED  B l a c k , E.R. 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M i n e t o w n , M i l l t o w n , R a i l t o w n L i f e i n C a n a d i a n Communities o f S i n g l e I n d u s t r y . T o r o n t o : U n i v e r s i t y o f T o r o n t o P r e s s , 1971. M i e r n y c k , W. E l e m e n t s o f I n p u t - O u t p u t A n a l y s i s . New Random House, 19 57.  York:  107  M o s e r , C A . S u r v e y Methods i n S o c i a l I n v e s t i g a t i o n . Heinemann E d u c a t i o n a l Books L t d . , 1958.  London:  N o r t h , D . C . " L o c a t i o n T h e o r y and R e g i o n a l E c o n o m i c Growth," R e g i o n a l E c o n o m i c s : T h e o r y and P r a c t i c e . E d i t e d by McKee, Dean and L e a h y . (1970) 29-48. P a t e r s o n , D.G. E u r o p e a n F i n a n c i a l C a p i t a l and B r i t i s h C o l u m b i a : An E s s a y on t h e R o l e o f t h e R e g i o n a l E n t r e p r e n e u r . D i s c u s s i o n P a p e r 73-20, U n i v e r s i t y o f B r i t i s h C o l u m b i a , D e p a r t m e n t o f E c o n o m i c s , November 1973. P a u l s o n , P., M e l l o r I . , and D o u g l a s W e b s t e r . A Preliminary P r o f i l e o f S o c i a l S t r u c t u r e , Manpower C h a r a c t e r i s t i c s and Community C h a r a c t e r i s t i c s i n t h e K o o t e n a y R e g i o n o f B.C. P r e p a r e d f o r I.P.A. S t u d i e s , D e p a r t m e n t o f E c o n o m i c D e v e l o p m e n t . J u l y 1975. P e r r o u x , F. "Note on t h e C o n c e p t o f "Growth P o l e s " , R e g i o n a l E c o n o m i c s : T h e o r y and P r a c t i c e . E d i t e d by McKee, Dean and L e a h y . (1970) 93-103. Ray, M i c h a e l D., "Canada: The U r b a n C h a l l e n g e o f Growth and Change," The G e o g r a p h y o f E c o n o m i c S y s t e m s . E d i t e d by B e r r y , C o n k l i n g , and Ray. (New J e r s e y : Prentice-Hall, I n c . 1976) 271-285. Department o f R e g i o n a l Economic E x p a n s i o n . B r i t i s h Columbia: Economic C i r c u m s t a n c e s and O p p o r t u n i t i e s . A paper p r e p a r e d as a c o n t r i b u t i o n t o f e d e r a l - p r o v i n c i a l c o n s u l t a t i o n s on r e g i o n a l d e v e l o p m e n t p o l i c y i n C a n a d a . A p r i l 1973. . Western R e g i o n : E c o n o m i c C i r c u m s t a n c e s and O p p o r t u n i t i e s . A p r i l 1973. R o b i n s o n , I r a . New I n d u s t r i a l Towns on C a n a d a ' s R e s o u r c e F r o n t i e r . C h i c a g o : U n i v e r s i t y o f C h i c a g o P r e s s , 1962. S h e a r e r , R.A. (Ed.) T r a d e L i b e r a l i z a t i o n and A R e g i o n a l Economy: S t u d i e s o f t h e Impact o f F r e e T r a d e on B r i t i s h C o l u m b i a . T o r o n t o : U n i v e r s i t y o f T o r o n t o P r e s s , 1971. . E x p l o i t i n g Our E c o n o m i c P o t e n t i a l : P u b l i c P o l i c y and t h e B r i t i s h C o l u m b i a Economy. T o r o n t o , M o n t r e a l : H o l t , R i n e h a r t and W i n s t o n o f C a n a d a , L t d . 19 68. S i l v e r s , A r t h u r L. "The S t r u c t u r e o f Community Income C i r c u l a t i o n i n an I n c i d e n c e M u l t i p l i e r : f o r D e v e l o p m e n t a l P l a n n i n g , " J o u r n a l o f R e g i o n a l S c i e n c e , 10:2 ( 1 9 7 0 ) : 175-189.  108  T i e b o u t , C h a r l e s . The Community E c o n o m i c Base S t u d y . New Y o r k : Committee f o r E c o n o m i c D e v e l o p m e n t , S u p p l e m e n t P a p e r No.16. 1962. T h i r s k , Wayne. R e g i o n a l D i m e n s i o n s o f I n f l a t i o n and Unemployment. O t t a w a : Government o f C a n a d a , P r i c e s and Income C o m m i s s i o n . 1973. T o m l i n s o n , J.W.C. and K. Sugiyama. A S t u d y o f A t t i t u d e s towards F o r e i g n D i r e c t Investment i n B r i t i s h Columbia. U n i v e r s i t y o f B.C. T r a d e U n i o n R e s e a r c h B u r e a u . Who  Owns B.C.?  V a n c o u v e r , B.C.  1965.  W e b s t e r , D.R. A P r e l i m i n a r y P r o f i l e o f S o c i a l Needs and O p p o r t u n i t i e s i n the North E a s t Region of B r i t i s h Columbia. P r e p a r e d f o r the N o r t h E a s t Task F o r c e , Department o f Economic Development. . P e o p l e o f t h e P e a c e : T h e i r G o a l s and O b j e c t i v e s . P e a c e R i v e r R e g i o n a l P l a n n i n g C o m m i s s i o n o f A l b e r t a . 1972. W e i s s , S. and E . G o u d i n g . " E s t i m a t i o n o f D i f f e r e n t i a l Employment M u l t i p l i e r s on a S m a l l R e g i o n a l Economy,". L a n d " E c o n o m i c s . '6:4 . (1968) : 235-244. W i l l i a m s o n , J.G. " R e g i o n a l I n e q u a l i t y and t h e P r o c e s s o f N a t i o n a l Development: A D e s c r i p t i o n o f the P a t t e r n s , " R e g i o n a l A n a l y s i s , e d i t e d by L. Needleman, ( 1 9 6 8 ) : 99-158.  109  APPENDIX I B.C.  SURVEY OF  INTERNATIONAL INVESTMENT  What c o u n t r y , a p a r t from t h e U.S.A., do you t h i n k has t h e c l o s e s t t r a d e r e l a t i o n s h i p w i t h the P r o v i n c e of B r i t i s h Columbia? 1. 2. 3.  U n i t e d Kingdom Japan West Germany  4. 5. 6.  France U.S.S.R. Other (Please d e s c r i b e )  I n w h i c h o r d e r do you rank t h e f o l l o w i n g c o u n t r i e s as i m p o r t e r s B.C. n a t u r a l r e s o u r c e s ? Rank from h i g h e s t (1) t o l o w e s t ( 5 ) . West Germany U n i t e d Kingdom Japan U.S.A. P e o p l e ' s Rep. o f  of  China  F o r e a c h o f t h e f o l l o w i n g s t a t e m e n t s , p l e a s e c i r c l e the number which you f e e l i n d i c a t e s hov; the statement f i t s your o p i n i o n . I f you a g r e e c o m p l e t e l y w i t h t h e statement you would c i r c l e ( 1 ) . Or, i f you d i s a g r e e c o m p l e t e l y , you would c i r c l e ( 1 0 ) , o r y o u r answer may be somewhere i n between. [ 3.  T h e r e i s t o o much f o r e i g n c a p i t a l b e i n g  invested i n  B.C.  ' 1 ' 2 ' 3 ' 4 ' 5 ' 6 ' 7 ' 8 ' 9 ' 1 0 ' Strongly Strongly agree disagree 4.  Raw m a t e r i a l s s h o u l d be p r o c e s s e d exported. ' 1 ' 2 S t r agree  1  o  3 ' 4 ' 5 n g l  1  6 y  7  1  S  8  1  t  1  r  i n the p r o v i n c e  9  1  o  10 n  before  1  g  l y disagree  In g e n e r a l , f o r e i g n i n v e s t m e n t has been b e n e f i c i a l development i n the P r o v i n c e o f B.C. ' 1 ' 2 Strongly agree 6.  a)  1  3 ' 4  5.  7  8  1  ' 9  ' 10  1  1  4  1  5  ' 6  improved t h e q u a l i t y o f l i f e i n 1  7  ' 8  ' 9  1  10  B.C.  ' Strongly, disagree  Employment o p p o r t u n i t i e s f o r l o c a l communities Income i n c r e a s e . I n c r e a s e o f commodity goods a v a i l a b l e S o c i a l amenities (housing, r e c r e a t i o n a l f a c i l i t i e s , t r a n s p o r t a t i o n , etc.) Others (Please explain) ,  I f you DISAGREE w i t h 6. a ) , i n what ways do had n e g a t i v e e f f e c t s ? 1. 2. 3. 4. 5. 6.  B.C.  1  economic  I f you AGREE w i t h the p r e v i o u s s t a t e m e n t 6. a ) , i n what a r e a s do you p a r t i c u l a r l y see t h e c o n t r i b u t i o n ? 1. 2. 3. 4.  c)  ' 6  i n v e s t m e n t has  1 ' 2 ' 3 Strongly agree b)  5  to the  Strongly disagree  Foreign 1  1  being  you  t h i n k i t has  Too much p o p u l a t i o n c o n c e n t r a t i o n I n s u f f i c i e n t r e t u r n t o B.C. from e x p l o i t a t i o n o f natural resources Removal o f p r o f i t s / e a r n i n g s and i n s u f f i c i e n t reinvestment in B.C. Environmental p o l l u t i o n D i s r u p t i o n o f l o c a l communities Others (Please explain) _ _  needs more i n v e s t m e n t from f o r e i g n c o u n t r i e s .  ' 1 ' 2 ' 3 ' 4 ' 5 ' 6 ' 7 ' 8 ' 9 ' 1 0 ' Strongly Strongly agree disagree  110  8.  a)  Do you know o f any Japanese b u s i n e s s a c t i v i t i e s o r i n y o u r community o r r e g i o n ? 1. 2.  b)  c)  Yes. No.  investment  ( P l e a s e go on t o t h e f o l l o w i n g q u e s t i o n s ) ( P l e a s e go t o q u e s t i o n 9)  I f t h e answer i s ' Y e s , what i s t h e n a t u r e o f t h e i n d u s t r y or the firm? 1  What i s y o u r i m p r e s s i o n o f J a p a n e s e b u s i n e s s p e o p l e , . whom y o u see i n your community o r r e g i o n ?  i n general,  In w h i c h f i e l d s o f B.C. b u s i n e s s do y o u t h i n k J a p a n e s e c a p i t a l i s involved? 1. 2. 3. 4. 5. 6. 7. 8. 9 10. 11. 10. a)  M i n e r a l Resources P e t r o l e u m and N a t u r a l Gas Forestry P u l p and Paper B a n k i n g , I n s u r a n c e and R e a l E s t a t e Manufacturing Agriculture Tourism Supermarketing - R e t a i l Transportation Others (Please describe) Do y o u s e e any s i g n i f i c a n t d i f f e r e n c e s between J a p a n e s e o r g a n i z a t i o n s and C a n a d i a n c o u n t e r p a r t s ? 1. 2.  b)  11.  Yes. No.  3.  Not f a m i l i a r  with  business  them.  I f t h e answer i s 'Yes', p l e a s e e x p l a i n .  How do y o u t h i n k J a p a n e s e c a p i t a l i n v e s t m e n t s h o u l d be t r e a t e d i n B.C.? P l e a s e o r d e r your p r e f e r e n c e s from l : \ ( m o s t . d e s i r a b l e ) t o 5 ( l e a s t p r e f e r r e d ) i n b o t h s e c t i o n s a) and b ) . a)  In B.C.natural resource  industries?  U n l i m i t e d - c a p i t a l i n v e s t m e n t s h o u l d be a l l o w e d . I t s h o u l d be a l l o w e d i f some C a n a d i a n c a p i t a l i s i n v o l v e d . A r o u n d 50 p e r c e n t i n v o l v e m e n t s h o u l d be a l l o w e d . L e s s t h a n 50 p e r c e n t i n v o l v e m e n t s h o u l d be a l l o w e d . No J a p a n e s e i n v e s t m e n t i s welcome. Undecided. b)  In manufacturing .  i n d u s t r i e s i n B.C.?  U n l i m i t e d c a p i t a l i n v e s t m e n t s h o u l d be a l l o w e d . I t s h o u l d be a l l o w e d i f some C a n a d i a n c a p i t a l i s i n v o l v e d . A r o u n d 50 p e r c e n t i n v o l v e m e n t s h o u l d be a l l o w e d . L e s s t h a n 50 p e r c e n t i n v o l v e m e n t s h o u l d be a l l o w e d . No J a p a n e s e i n v e s t m e n t i s welcome. Undecided.  Comments:  i  (Please turn over)  Ill 12. Which of the following ^ejsjriptions do you consider accurate? (Please c i r c l e the number of che description i n both a) and b}.) a)  In Japan, natural resources are: 1. 2. 3.  b)  abundant - Japan exports natural resources. adequate - Japan i s self-sufficient. scarce - Japan relies heavily on imports.  Japan: 1.  i s one of the most industrialized and urbanized nations in the world. has been industrialized recently. i s less industrialized than most western countries.  2. 3.  For, each of the following statements, please c i r c l e the number which you feel indicates how the statement f i t s your opinion. ~~ . 13. Japanese business involvement in the province has increased direct or indirect employment opportunities. Strongly agree  —————————  Strongly disagree  14. Japanese investment w i l l increase local employment opportunities in the future. ' 2 ' 3 • 4 ' 5 ' 6 * 7 • 8 ' 9 ' 10 • S t r o n g l y S t r o n g l y agree disagree ^1  IS. Increasing Japanese investment in B.C. i s likely to cause p o l i t i c a l f r i c t i o n i n the future. • 1 • 2 • 3 ' 4 ' 5 ' 6 ' 7 • 8 ' 9 ' 10 ' S t r o n g l y S t r o n g l y agree disagree  16. Increasing Japanese investment in B.C. i s l i k e l y to cause social f r i c t i o n in the future. • 1 ' 2 • 3 • 4 ' 5 ' 6 ' 7 • 8 S t r o n g l y ; S t r agree  e  9 ' 10 • o n g l y disagree  17. Japanese firms in B.C. are more likely to try to cooperate with the provincial government than are Canadian companies. • 1 • 2 * 3  S t r agree  o  1  n  4 ' 5 • 6 ' 7 ' 8 • 9 • 10 ' g l y S t r o n g l y disagree  Any other comments:  It would also help greatly in classification of the survey results i f you could complete the following general information about yourself. A l l replies are confidential. (Please c i r c l e the appropriate category number in each question) 18,  Sex:  19.  Ages  20.  Male 1. 2. 3. 4.  Female  15-19 20-24 25-29 30-34  5. 6. 7.  35-49 50-59 60 and over  Citizenship: 1.  Canadian  2.  Other (Please specify)  112 21. E d u c a t i o n a l l e v e l :  ( P l e a s e p l a c e an 'x' i n t h e a p p r o p r i a t e columns)  Level Elementary Secondary University V o c a t i o n a l School or r e l a t e d 22.  Completed  Occupation: a)  Which o f t h e f o l l o w i n g r e p r e s e n t s t h e t y p e o f work y o u a r e engaged i n ? 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14.  b)  1. 2. 3.  What i s t h e n a t u r e o f y o u r p r e s e n t  Less than 1 year 1 - 3 years 3 - 6 years  job?  i n B.C.? 4. 5. 6.  6-9 years 9 y e a r s and o v e r A l l your l i f e  To what newspapers o r j o u r n a l s do you s u b s c r i b e ? .1. ' L o c a l '2: 3.  activity  Agriculture Forestry F i s h i n g and T r a p p i n g Mines, Q u a r r i e s , O i l Wells Manufacturing i n d u s t r i e s Construction T r a n s p o r t a t i o n , Communication Other U t i l i t i e s Trade Education Finance, Insurance, Real E s t a t e Community B u s i n e s s - P e r s o n a l S e r v i c e I n d u s t r i e s P u b l i c A d m i n i s t r a t i o n and Defence Other (Please d e s c r i b e )  2 3. How many y e a r s have you l i v e d  2 4.  Some  •  ' N a t i o n a l : '  " ' "' -'--••*-• •  • - • •.  ( P l e a s e name them)  "  •-•  • "•  '_ -  International  2 5.  P l e a s e c i r c l e t h e number o f t h e r e g i o n where you l i v e on t h e map  2 6.  Household A n n u a l Income: 1. 2. 3. 4.  $ 0 $ 6,000 $ 8,000 $ 10,000  -  $ 5,999 $ 7,999 $ 9,999 $11,999  5. $12,000 - $14,999 6. - $15,000 - $19,999 7. $20,000 - $24,999 8. $25,000 and o v e r  •--  s  113  APPENDIX I I PER C A P I T A VALUE OF FACTORY SHIPMENTS I N B.C. ECONOMIC SUB-REGIONS, 1 9 7 1 Economic Sub-regions  Regional D i s t r i c t Gross Value Population o f S h i p m e n t s (1971 C e n s u s ) ($000)1971  East  East  Kootenay  Kootenay  64,022  39,720  $ 1 ,612  65,552 49,059  44,790 30,640  1 ,519  C e n t r a l and West Kootenay  Central  Okanagan  C e n t r a l Okanagan Kootenay Boundary N o r t h Okanagan OkanaganSimilkameen  77,859 71,976 49,151  50,175 31,395 34,040  35,027  42,750 158,360  1 , 477  Squamish-Lillooet  48,378 98,483  13,080 75,750 88,830  1, 653  G r e a t e r V a n c o u v e r G r e a t e r V a n c o u v e r 2,112,067 Central Fraser Valley 68,063 Dewdney-Alouette 149,49 0 (incl.Sunshine Coast and P o w e l l R i v e r ) Fraser-Cheam 40,697 2, 370,317  1,028,330  172,799  31,745  150,678 144,511 120,534 103,636  10,410 204,805 38,985 47,345 48,005  692,158  381,295  1 ,815  Cariboo Bulkley-Nechako F r a s e r - F o r t George  75,515 37,389 212 ,747 325,651  39,355 27,145 64,365 130,865  2 ,488  •Kitimat-Stikine ( i n c l . Stikine). Skeena A Ocearn F a l l s  148,158  Thompson  Vancouver  Island  Central  N o r t h West  North East  Kootenay  Per Capita Value of Factory Shipments  Alberni-Clayoquot (Incl.Mount Waddington) Capital Cowichan V a l l e y Comox-Strathcona Nanaimo  Peace  River-Liard  . 58,085 40,100 9,655 18,535 49,095 1,200,800  86,310 13,662 248,130  37,330 1,470 22,295 4 ,215 65,310  40,207  43,995  ' S o u r c e : B r i t i s h Columbia Market Data, Survey of Markets  1,,974  3 ,799  1974-75.  914  

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