Natural Resources, ‘Vent-for-Surplus’ and the Staples Theory

  • Ronald Findlay
  • Mats Lundahl
Chapter
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Abstract

This chapter integrates the frontier into a model of staples production (where staples are defined as raw materials in high demand in the international market). Agricultural goods are produced with the aid of land and labor. The land has to be developed with the aid of capital before it can be put to use. Manufactures are produced with the aid of labor and capital (the manufactured good itself). Trade is opened when the price of agricultural goods increases. The frontier is then extended and agricultural production increases at the expense of manufactures. The staples model, however, also deals with factor movements, which in turn open the possibility of industrialization and in the end for a general expansion of the economy (both sectors).

Keywords

Real Wage Cash Crop Capital Inflow Coffee Production Recent Settlement 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.
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Copyright information

© The Author(s) 2017

Authors and Affiliations

  • Ronald Findlay
    • 1
  • Mats Lundahl
    • 2
  1. 1.Department of EconomicsColumbia UniversityNew YorkUSA
  2. 2.Department of EconomicsStockholm School of Economics and Institute of Latin American Studies Stockholm UniversityStockholmSweden

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