Staple Theory of Economic Growth

READER'S GUIDE TO THE SOCIAL SCIENCES, Jonathan Michie, ed., Fitzroy Dearborn Publishers, 2001

Posted: 22 Jan 2010  

Morris Altman

University of Newcastle; Victoria University of Wellington - School of Economics & Finance

Date Written: 2001

Abstract

The Staple Theory of economic growth and development was first articulated to help explain the process of economic evolution in places with an abundance of natural resources and a relatively small population. The theory assumes that only by exporting staples products and importing manufacturing products can a staple based economy realize relatively high-levels of material well-being. The success of a staple economy depends on its capacity to transform staple products into cost competitive exports, mainly through supply side variables. The staple export sector can also lead the growth process even when it is not the economy's leading sector through linkages with other parts of the economy, though the extent of this depends on social and political factors.

Keywords: Staple theory, Growth, Development, Natural resources, Manufacturing sector, Trade

JEL Classification: O10, N11, N12, F43

Suggested Citation

Altman, Morris, Staple Theory of Economic Growth (2001). READER'S GUIDE TO THE SOCIAL SCIENCES, Jonathan Michie, ed., Fitzroy Dearborn Publishers, 2001. Available at SSRN: https://ssrn.com/abstract=1539790

Morris Altman (Contact Author)

University of Newcastle ( email )

University Drive
Callaghan, NSW 2308
Australia

Victoria University of Wellington - School of Economics & Finance ( email )

P.O. Box 600
Wellington 6001
New Zealand

Paper statistics

Abstract Views
2,021