ABSTRACT
The preceding account of Canada’s early economic development may at first sight appear to contradict the idea that facts can exist without theories. This is not the case. Behind the apparently descriptive account, there is an implicit but clear theoretical framework. This framework is the staple theory, which asserts that the pace and nature of an area’s economic growth is determined by the characteristics of its staple product. The staple theory has been the most common approach to Canadian economic development, both before and after 1850. The validity and usefulness of this approach to the earlier period is generally accepted, but during the last twenty years there has been growing criticism of its applicability to the later period. The present chapter will examine the staple theory and some alternative approaches to Canadian economic development.
