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The staple thesis is a theory of economic growth that emphasizes the part of traditional commodities, or staple products, and the encroachment they have connected shaping a resource-rich economy. It argues that national economies are linked to the production and export of essential goods.
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The thesis follows that traditional commodities or staple products contribute immensely to the actualization of a wealthy economic system.
What kind of theory is the staples thesis?
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 departments of political economy."
How is the staple thesis applied to Canada?
The staple thesis is a theory of economic growth which emphasizes the role of traditional commodities or staple products and their impact on the shaping a resource-rich economy. Though its original purpose was to model Canada's historical economic evolution, the staple thesis can be applied to any country with an export-heavy economy.
Which is the best definition of a staple?
Definition of a staple: a commodity which dominates an economy s exports. In the staples thesis, the commodity must be relatively unprocessed.
How does the staple thesis affect the economy?
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. Another contemporary application of the staple thesis could involve the influence of the petroleum industry on economic growth in a country that exports crude oil, such as Brazil.
Last Update: Oct 2021
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