ECON 2K03 Lecture Notes - Factor Endowment, Diminishing Returns, Comparative Advantage
12 Mar 2013
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Document Summary
Marxist class analysis: evolution of canadian economy shaped by the unequal competition between capitalists and labour, key moment in canadian history is the emergence of a working class in the early 19th century. The staples thesis: central role of economic culture, focus on exported primary products - for the staple theory to apply, the economy must be highly specialized in the production of one or more natural resources to export. Canada remains highly dependent on the export of natural resources. Things such as oil may not be able a staple in canada, but is a staple for alberta. Basically, if you continue exporting your staple, it should get a world price. If demand increases, the world price increases, therefore = growth: typical staples (fish, fur, timber, wheat, canada emerges because of its geography, not in spite of its geography. The staples thesis is a theory of canadian economic development.
