TheProsperityIndex
Measuring economic freedom across Canada
Making Economic FreedomMeasurable
The Prosperity Index is the Canadian Freedom Institute's flagship research initiative—a comprehensive scorecard that ranks Canadian provinces and municipalities on economic freedom, regulatory burden, tax competitiveness, and ease of doing business. By providing rigorous, comparable data across jurisdictions, we give policymakers, business leaders, and citizens the tools to understand what drives prosperity.
Too often, debates about economic policy happen in the abstract. The Prosperity Index grounds these conversations in concrete, measurable indicators. When a province climbs or falls in the rankings, it creates accountability. When a municipality outperforms its neighbours, it provides a model others can study and emulate.
Our methodology draws on established economic freedom indices while incorporating uniquely Canadian factors—interprovincial trade barriers, natural resource policies, labour market flexibility, and the regulatory environment facing small businesses. We partner with business associations, chambers of commerce, and academic researchers to ensure our data is both rigorous and relevant.
The annual Prosperity Index report generates significant media coverage and policy discussion. But beyond the headlines, we provide detailed breakdowns that allow jurisdictions to identify specific areas for improvement. A province might rank well on tax competitiveness but poorly on regulatory burden—our granular data helps pinpoint where reform efforts should focus.
Ultimately, the Prosperity Index serves CFI's educational mission by making the case for economic freedom tangible and measurable. When Canadians can see that freer economies deliver better outcomes—more jobs, higher incomes, greater opportunity—the argument for free-market policies becomes compelling and concrete.
Tools for Better Policy
The resources the Prosperity Index will provide to policymakers, researchers, and citizens
Annual provincial and municipal rankings
Interactive data visualisations and comparison tools
Detailed methodology documentation
Historical trend analysis
Sector-specific deep dives (e.g., construction, retail, manufacturing)
Media-ready graphics and summary reports
Policy briefs with actionable recommendations
Planned Coverage
Comprehensive data across the Canadian economic landscape
Index Components
The building blocks of our comprehensive economic freedom measurement
Tax Competitiveness Score
Comprehensive analysis of personal income tax rates, corporate tax rates, capital gains treatment, small business tax rates, carbon taxes, property taxes, and overall tax burden as a percentage of GDP. Compares each jurisdiction against Canadian averages and international benchmarks from competitor economies.
Regulatory Burden Index
Measures the cumulative weight of provincial and municipal regulations on businesses—including licencing requirements, permit approval times, compliance costs, and the number of regulatory bodies businesses must interact with. Draws on surveys of business owners and systematic regulatory counts.
Labour Market Flexibility Score
Examines employment standards legislation, unionisation rates, minimum wage policies, hiring and termination regulations, and workforce mobility. Assesses how easily employers and employees can form mutually beneficial arrangements.
Interprovincial Trade Openness
Unique to Canada, this indicator measures barriers to trade between provinces—professional credential recognition, product standards harmonisation, government procurement preferences, and regulatory alignment. Quantifies the hidden costs of Canada's internal trade barriers.
Property Rights Security
Assesses the security of property rights including expropriation risk, zoning predictability, contract enforcement through courts, and protections for intellectual property. Examines both legal frameworks and practical outcomes.
Ease of Starting a Business
Tracks the time, cost, and procedural steps required to register and launch a new business in each jurisdiction. Includes federal, provincial, and municipal requirements as well as sector-specific licencing for common business types.
Energy Cost Competitiveness
Detailed analysis of electricity and natural gas costs for industrial, commercial, and residential users. Examines the impact of provincial energy policies, carbon taxes, renewable mandates, and grid reliability on business competitiveness.
Housing Market Freedom
Examines zoning restrictions, development approval timelines, rent control policies, and construction regulation across major municipalities. Correlates regulatory approaches with housing affordability and supply outcomes.
Small Business Health Check
Partnership with business associations to survey thousands of Canadian small business owners on their experience with government—taxes, regulations, permits, inspections, and compliance costs. Provides qualitative depth to complement quantitative indicators.
Municipal Competitiveness Rankings
Detailed rankings of Canada's 50 largest municipalities on factors within local government control—property taxes, development charges, permit approval times, business licencing, and local regulatory burden. Helps identify municipal best practices.
Historical Trend Dashboard
Online visualisation tool allowing users to track how provinces and municipalities have changed over time across all indicators. Identifies jurisdictions that are improving or declining and correlates policy changes with outcomes.
Policy Reform Tracker
Continuous monitoring of regulatory and tax policy changes across Canadian jurisdictions. Documents reforms, estimates their impact on index scores, and provides early warning of policy directions before annual rankings are released.
Help Build the Index
The Prosperity Index is an ambitious undertaking that requires partnership with business associations, chambers of commerce, academic researchers, and policy experts across Canada. If you're interested in contributing data, expertise, or resources to this initiative, we'd love to hear from you.
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