Staple Thesis

DEFINITION of 'Staple Thesis'

A theory of economic growth that emphasizes the role traditional commodities, or staples, play in the shaping of a resource-rich economy. The staple thesis was created by Canadian economic historian Harold Innis and economist W.A Mackintosh as an explanation for how the pattern of settlement and economic development of Canada was influenced by the exploitation and export of natural resources. Though its original purpose was to model Canada's historical economic evolution, the staple thesis can be applied to any country with a successful, export-heavy economy.

BREAKING DOWN 'Staple Thesis'

The staple thesis factors the extraction of natural resources into several areas of economic development. Historically, an example can be derived from the fishing industry: an increase in the demand for fish subsequently increases demand for the construction of fishing ships. In contemporary times, another example would be the influence of the petroleum industry on economic growth in a country that exports oil. An increase in demand for oil exports influences the development of infrastructure, technological innovation and human capital.

RELATED TERMS
  1. Consumer Staples

    Essential products such as food, beverages, tobacco and household ...
  2. Investment Thesis

    The beliefs that investors decide to use when determining what ...
  3. Staple Financing

    A pre-arranged financing package offered to potential bidders ...
  4. Applied Economics

    The application of economic theories and principles to real world ...
  5. Endogenous Growth Theory

    An economic theory which argues that economic growth is generated ...
  6. Economic Conditions

    The state of the economy in a country or region. Economic conditions ...
Related Articles
  1. Options & Futures

    A Guide To Investing In Consumer Staples

    These companies may not be flashy but they offer investors structure and diversification.
  2. Mutual Funds & ETFs

    Will Staples ETFs Continue to be a Safe Haven

    Consumer staples stocks and ETFs that track them can be a haven during tough market times.
  3. Economics

    What are Consumer Staples?

    Procter & Gamble, Kimberly-Clark and Phillip Morris are good examples of consumer staple companies.
  4. Mutual Funds & ETFs

    3 Best Dividend-Paying Consumer Staples Mutual Funds (VCSAX, FDFAX)

    Learn about the consumer staples sector, including performance in 2016, and the top three high-yield dividend consumer staples mutual funds to consider.
  5. Brokers

    The Debt Report: The Consumer Staples Sector

    Learn about the improving stock performance and rising debt-to-asset ratios in the United States blue-chip consumer staples sector.
  6. Chart Advisor

    Consumer Staple Stocks Are Poised to Pop

    These strong uptrends suggest that consumer staples is the sector where you want to put your money.
  7. Chart Advisor

    Invest In Consumer Staples With This ETF

    The consumer staples sector is showing signs of strength in a weak market. We'll take a look at a couple ways to make a trade.
  8. Mutual Funds & ETFs

    3 Best Dividend-Paying Consumer Staples ETFs (XLP, PG)

    Find out which dividend-paying consumer staples exchange-traded funds (ETFs) are considered the best in their fund category for 2016.
  9. Mutual Funds & ETFs

    Consumer Staples ETFs to Date 2016 Performance Review (XLP, VDC)

    Find out how the consumer staples sector is performing year-to-date in 2016, and which are its best- and worst-performing exchange-traded funds.
  10. Mutual Funds & ETFs

    XLP Vs. VDC: Comparing Consumer ETFs

    Discover the Consumer Staples Select Sector SPDR ETF and the Vanguard Consumer Staples ETF, which are exchange-traded funds (ETFs) following consumer staples indexes.
RELATED FAQS
  1. Is Canada a developed country?

    Find out how Canada fares as a developed country, boosted by its economic strength and a strong standard of living for Canadian ... Read Answer >>
  2. Which factors can influence a country's balance of trade?

    Find out about the factors that affect a country's overall balance of trade, including factor endowments, barriers to trade, ... Read Answer >>
  3. What is demand-side economics?

    Learn the basic theory of demand side economics, which emphasizes the importance of aggregate demand and supports government ... Read Answer >>
  4. What are some of the most common mutual funds that give exposure to the food and ...

    Take a look at some of the most popular mutual funds that investors consider for obtaining exposure to the food and beverage ... Read Answer >>
  5. What impact does economics have on government policy?

    Learn about the impact of economic conditions on government policy and understand how governments engineer economic conditions ... Read Answer >>
  6. What is the relationship between human capital and economic growth?

    Learn what human capital and economic growth are and how human capital is related to economic growth, and see examples of ... Read Answer >>
Hot Definitions
  1. Law Of Demand

    A microeconomic law that states that, all other factors being equal, as the price of a good or service increases, consumer ...
  2. Cost Of Debt

    The effective rate that a company pays on its current debt. This can be measured in either before- or after-tax returns; ...
  3. Yield Curve

    A line that plots the interest rates, at a set point in time, of bonds having equal credit quality, but differing maturity ...
  4. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will ...
  5. Keynesian Economics

    An economic theory of total spending in the economy and its effects on output and inflation. Keynesian economics was developed ...
  6. Society for Worldwide Interbank Financial Telecommunications ...

    A member-owned cooperative that provides safe and secure financial transactions for its members. Established in 1973, the ...
Trading Center