Staple theory and export-led growth: constructing differential growth

The staple theory is a subset of the export-led growth hypothesis, designed to explain the growth and economic development of resource-rich economies. It is a theory that has been misunderstood and is seen to be at odds with the stylised facts of economic growth and development as well as with mainstream neoclassical wisdom. This article presents a brief and critical historiography of the staple theory from which a simple model of staple growth and development is gleaned. As well, data are presented which suggest that staple theory remains an important analytical tool to help explain economic development and growth. Copyright Blackwell Publishing Asia Pty Ltd and the Economic History Society of Australia and New Zealand 2003.