final paper outline info junk - A staple economy is...

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A staple economy is characterized by short term volatility, which I will discuss in my paper. Also there exist “staple traps” which occur within a planned staple economy which relies too heavily its staple that eventually loses its competitive edge or becomes obsolete, leading to recession. This would happen in Saudi Arabia for example if alternative energy overtook oil and the Saudi’s did not transition to another staple or some other industry to sustain their economy. I plan to search for evidence of this in east Asian economies along with the transition to other staples or specialization within industries such as the production of computer chips, hard drives, and other technology. I expect to find that as wages rise over time, these economies begin to evolve and find other niche’s, largely as the result of technology spillovers, and grow away from industries that rely on cheap labor, as they lose their comparative advantage in this respect as they continue the catching up process. Without tansititioning staples, these economies will cut short their catching up progresses. My research will likely support the notion that a complete catching up will not be possible because current cheap labor industries are not sustainable as a country becomes more wealthy. However by smooth changeover into other leading exports, the NIE’s will continue catching up, if the dynamics of an export led staple economy hold true. However a major challenge facing the Chinese government is how to maintain such high levels
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final paper outline info junk - A staple economy is...

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