The central problem of the thesis is the retardation of regional growth. The economy of New Brunswick has provided a case in point for over a hundred years. That is to say, real per capita income within the province has tended to lag behind that achieved in competing regions. This competition has been viewed primarily as a scramble for factors of production. The winners were those areas which attracted factors from lagging sectors whenever income differentials became significant. The losers, in turn, could find in such an exodus a major reason why retardation developed cumulative tendencies.