The staple approach to historical economic study is mainly a Canadian invention. Harold Innis is known as the theory’s inventor, with his innovative historical research, particularly on fish and fur export (Watkins, 1963). His primary focus was the overall effect of staple export on the country’s economic structure. The concurrent diminish of the staple approach’s notoriety among Canadian scholars and its upsurge in the rest of the world has left a void in the existing literature. Hence, the paper argues that the staple approach may be usefully restricted to a specific form of economic development and rephrases the theory more stringently. Further, it compares the staple approach with other frameworks of economic growth; and, eventually, suggests the applicability of a staple approach to the historical case of Canada.
The staple theory’s underlying principle states that mainstay exports constitute the dominant part of the economy and dictate the agenda for economic progress. The limited—and, at the start, potentially non-existent – local economy and an excess of territory compared to workforce and assets – generate a competitive advantage in export trade or staples. Economic growth becomes a procedure of diversification centered on commodity exports. The dispersed impacts of the export industry, that is, the effect of exporting on the internal market and society, demonstrate the core idea of a staple theory. Overall, the staple theory represents the significance of conventional products, or staple goods, in forming a self-reliant economy. It contends that economic systems are intrinsically tied to traditional assets.
Reference
Watkins, M. H. (1963). A staple theory of economic growth.The Canadian Journal of Economics and Political Science, 29(2), 141-148.