We analyze labor productivity convergence between and within Canadian provinces by incorporating a spatial lag in a standard empirical neoclassical growth model. Results point to the predominance of inter-sectoral spillover effects. Furthermore, ignoring spatial effects yields smaller convergence estimates.& COPY; 2023 The Author(s). Published by Elsevier B.V. This is an open access article under the CC BY license (http://creativecommons.org/licenses/by/4.0/).