MGMT 1030 Lecture Notes - Lecture 4: Staples Thesis
20 Jul 2016
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Document Summary
Staple products are the high natural resources or primary products such as fur, cod, timber and wheat which are produced for export. The exporting country or region thus faces a price set in the world market. The pace of economic growth, and economic diversification, depends upon the strength of economic linkages, or spreading effects, arising from staple production. Backward linkages to staple exploitation are inputs to the production of staples. Forward linkages are activities where the staple is processed or manufactured into other products prior to export. Lateral linkages are non-staple economic activities that are stimulated by the staple production. Exploitation of natural resources always generates wealth and linkage benefits. Initial endowments are a region"s prior accumulation of population, financial capital, productive capacity, entrepreneurial class, and political power.
