GGR221H1 Lecture Notes - Lecture 2: Thorstein Veblen, Paul Krugman, Regional Lockout
Document Summary
Lecture 2: staples theory and canadian resource sectors. Mcintosh natural flow of commerce and trade is a north south one in which the flow of goods and money is always north to south as opposed to east and west. Staples production: primary resource activities and primary manufacturing activities in which (cid:396)esou(cid:396)(cid:272)es a(cid:396)e (cid:373)ajo(cid:396) i(cid:374)puts . Taples e(cid:272)o(cid:374)o(cid:373)(cid:455): (cid:862) a (cid:396)egio(cid:374) that depe(cid:374)ds p(cid:396)i(cid:373)a(cid:396)il(cid:455) o(cid:374) the export of raw and semi processed (cid:373)ate(cid:396)ials to a(cid:373)o(cid:396)e ad(cid:448)a(cid:374)(cid:272)ed (cid:373)a(cid:374)ufa(cid:272)tu(cid:396)ai(cid:374)g e(cid:272)o(cid:374)o(cid:373)(cid:455)(cid:863) (cid:894)pat ma(cid:396)(cid:272)hak(cid:895) If you orient your economy to staple goods, there will be more linkages later on (?) Staples industries are leading sector of economy and set pace for economic growth. Economic development a process of diversification around export base. In conventional accounts, spread effects of sector realized through four types of interlinkages: backward linkages backwards in the economy; eg. in forest industry, will see backward linkage in the logging industry; mining industry towards mining equipment.
