Your question: What is Canada’s staples trap?

This is Canada’s “staples trap,” as famed Canadian economist Mel Watkins coined it in his seminal 1963 paper “A Staple Theory of Economic Growth”: The tendency for the country to tilt its economic resources and policies in support of one particularly in-demand staple or another that, inevitably, leaves the economy …

Is Canada still a staple economy?

The Canadian economy has long been associated with the production and export of staples — largely unprocessed goods of relatively high bulk and low value.

What is the Staples model?

The staple thesis is a theory of economic growth that emphasizes the role of traditional commodities, or staple products, and the impact they have on shaping a resource-rich economy. It argues that national economies are linked to the production and export of staple goods.

Why is Staples theory important 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 well as on the social and political systems.

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What is a staple trade?

Under this system, the government or the ruler required that all overseas trade in certain goods be transacted at specific designated market towns or ports, referred to as the “staple ports”. …

What is Dutch disease in economics?

Dutch disease is a shorthand way of describing the paradox which occurs when good news, such as the discovery of large oil reserves, harms a country’s broader economy. … Symptoms include a rising currency value leading to a drop in exports and a loss of jobs to other countries.

What does the term staple mean?

1 : used, needed, or enjoyed constantly usually by many individuals. 2 : produced regularly or in large quantities staple crops such as wheat and rice. 3 : principal, chief.

What is Staples thesis in just walk on by?

Staples in his essay is gathering sympathy from his audience. He explains his thesis throughout the essay describing different incidents which took place in his life.

What are staple exports?

Definition of a staple: a commodity which dominates an economy’s exports. In the staples thesis, the commodity must be relatively unprocessed. Fish, wheat and flour, timber and furs are all considered Canadian staple products. Determinants of the staple produced in a region.

Why is the staple theory important?

Rather, the staple theory was developed as an analytical framework to help explain the economic evolution of economies where exports of raw materials or their processed by-products have been of some consequence, and to determine the conditions under which staple-related economic activity positively contributes to …

What is heartland and hinterland?

Heartland-hinterland approach is synonymous or relative to the metropolitanism in which the metropolises (or the heartland) are the epicenters for government, industry, commerce and trade as well as political power but allow interdependent linkages with the peripherals (or the hinterland).

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How does Innis staples theory explain Canada’s economic history?

The thesis explains Canadian economic development as a lateral, east-west conception of trade. Innis argued that Canada developed as it did because of the nature of its staple commodities: raw materials, such as fish, fur, lumber, agricultural products and minerals, that were exported to Britain and the West Indies.

What ways did the original staple trade play a role in the development of Canada?

Foster and Eccles (2013) state that the the fur trade, sustained by demand in Europe for felt hats, opened the Canadian territories “to exploration and settlement, financed missionary work, established social, economic and colonial relationships between Europeans and Indigenous people, and played a formative role in …

What is export theory?

The Theory

The export base theory of regional growth in brief. holds that total economic activity, in a region which is. open to relatively large amounts of trading with other. regions, will grow rapidly or slowly mainly in response. to changes in the regions’ export revenues.

What was the wool staple?

A wool staple is a cluster or lock of wool fibres and not a single fibre. For other textiles, the staple, having evolved from its usage with wool, is a measure of the quality of the fibre with regard to its length or fineness.