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Business
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| Number of pages / Number of words: |
5 / 1331 |
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The basic and fundamental concept of the Staple theory is that export of natural resources(staples), from Canada to more advanced economies has a thorough affect on the economy which in turn affect the social and political frameworks within Canada; simply put, the staple theory is a theory of export-led growth based on staple products[2]...
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Staples are basically any valuable and exportable natural resources(land and subsoil assets requiring very little processing) which can bring in income for an economy. Staple generated economic growth is created by the direct investment in the extraction of the staple and the "spread effects" or economic reaction effects; forward linkages involving processing of the staple prior to export; backward linkages involving the production of inputs such as resource machinery and transportation infrastructure that are required to extract the staple; final-demand linkages involving the production of consumer goods and services to meet the regional needs of those who are employed in the staple industry; and fiscal linkages involving the expenditure of rents and profits generated by resource production...
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