Staples theory

Staple Thesis Staple Thesis, a theory asserting that the export of natural resources, or staples, from Canada to more advanced economies has a pervasive impact on the economy as well as on the social and political systems.

Of the various extensions and amendments to the staple theory, of particular importance has been the explicit introduction of linkages into analytical framework although Mackintosh himself highlighted in the s what has come to be referred to as linkages. That province's economic structure exemplifies the "core-periphery" structure of intra-regional relationships.

The Economy of British North America. Rather, given the demand for its staple products, the ability of a region to engage in staple exports depends upon its capacity to reduce the unit costs of its staples.

In western Canada the central staple was wheat. The thesis may be the most important single contribution to scholarship by Canadian social scientists and historians; it has also had some influence internationally, notably in the Staples theory of a comparable country such as Australia.

Similarities Between the Nineteenth and Twentieth Centuries. This fur trade was controlled by large firms, such as the Hudson's Bay Company and thus produced the much more centralized, business-oriented society that today characterizes Montreal and Toronto.

These non-staple industries can, in time, become export oriented given their low production costs, which are partially attributed to the development of the staple-related residentiary industries. The theory argues that the degree to which economies rely upon the export of staples for their development affects their economic, social and political development.

The theory argues that the degree to which economies rely upon the export of staples for their development affects their economic, social and political development.

Canada, the United StatesAustralia, and New Zealand are nations where staples appear to have played a positive role in fostering economic development.

Staples and Staple Theory

This industry was very decentralized, but also very co-operative. Argued that the pattern of settlement and economic development in Canada, up to the 20th century, and perhaps even now, has been shaped by production of a few products for export. For example, Innis claimed that the fur trade largely determined Canadian boundaries.

Canada's greatest challenge was to unite the country across a vast and varied geography. Backward linkages refer not simply to activities related to the immediate production of the staple product, but also to the production of the infrastructure, such as transportation, necessary to make staple production economically viable.

Brazil as an Example of Staple Thesis The basic framework of the staple thesis is potentially applicable to any economy which developed by exporting raw materials. In Central Canadathe main staple was fur, and the fur trade dominated the economy for many years.

Thus, exports and trade expansion are the "handmaidens" of growth, not the true engines of the export-led growth process. When staple exports depend on both the demand and supply sides, staple theory suggests that the path of economic evolution taken by a region is very much contingent upon the supply-side initiatives taken by individuals in staple-rich regions.

Staples thesis

The evidence as to whether staple exports has played and continues to play a critical and positive role in the development process is mixed. Rather, determining the veracity of the causal assumptions made by staple theorists is at the heart of any determination of the role played by staple exports in the development or growth process.

Because the heartland was dependent upon the search for and accumulation of staples which were located in the hinterland to perpetuate the economy, it sought to gain economic and political power by exploiting the hinterland. A Staple Theory of Economic Growth Created Date: Z.

In economic development, the staples thesis is a theory of export-led growth based on Canadian experience.

The theory "has its origins in research into Canadian social, political, and economic history carried out in Canadian universities by members of what were then known as. Staples and Staple TheoryThe staple theory of economic growth is most closely linked with the name of Harold Innis (–), a University of Toronto economist who argued that current theories failed to explain the economic evolution of countries such as Canada, which has a relative abundance of land and other natural resources.

Source for. To help understand the strengths and weaknesses it is important to look at the views of both early theorists Harold Innis and W.A. Mackintosh The purpose of this paper is too to take Staples Theory and its explanatory power and apply it to the economic history of Canada.

Staple Thesis, a theory asserting that the export of natural resources, or staples, from Canada to more advanced economies has a pervasive impact on the economy as.

In Defence of the Staple Thesis of Canadian Economic Development Introduction Much recent [] literature in Canadian Economic History has rejected, or at least questioned, the Staple Theory of Canadian Economic Development.

At the same time the Theory has received a strong and very respectable defence.

Staples theory
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Staple Thesis | The Canadian Encyclopedia