Download Canadian Economic History: Classic and Contemporary by Mel Watkins, John Webster Grant PDF

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By Mel Watkins, John Webster Grant

Modern methodologies comprise the "cliometric" kind of historic research, econometrics, labour and neighborhood examine, and the altering parameters of presidency spending and public finance. The juxtaposition of vintage theoretical statements with works via "outsiders" akin to G.S. Kealey, B.D. Palmer, R.T. Naylor, R.E Ommer, between others, makes this a pretty good but cutting edge list of the development in economics during the last 40 years. Canadian fiscal heritage continues to be an important school room textual content.

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The emphasis increasingly placed by economists on the link between the inefficiency of Canadian secondary manufacturing industry and the Canadian tariff49 suggests that the major difficulty is an inhibiting export mentality, the elimination of which lies within Canadian control. Prom this point of view, economic institutions and political values, an inefficient structure of industry combined with an unwillingness to do anything about it, have in the past prevented Canada from growing at a satisfactory rate in the absence of a strong lead from primary exports, but this need not be true for the indefinite future.

Lewis and the late R. 35 Kindleberger's classification applies to countries already in the process of development. The limitations of the staple theory emerge most clearly when we consider the case where export production is superimposed on a preexisting subsistence economy. For the staple economy, the export sector can be an engine of growth; for the subsistence economy, the consensus appears to be that the export sector will have either limited or adverse effects on the economy. H. 37 The country might have been better off if it had never exported in the first place.

The result will be increasing demand for factors. Domestic slack, if it exists at all, will be quickly absorbed, and the continuation of growth will depend on the ability to import scarce factors. If the supply of foreign factors is elastic, the customary tendency for the expansion of one sector—in this case exports—to affect domestic sectors adversely by driving up factor prices is mitigated. 24 But what of the nature of growth in the long run? P. " Particular export lines can create prosperity, but typically only for a short time.

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