By Roger Hayter
During this quantity, Roger Hayter argues that the modern restructuring of British Columbia's wooded area economic system is pushed by means of comparable yet specific units of forces, eventually rooted in source and commercial dynamics.
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Additional resources for Flexible Crossroads: The Restructuring of British Columbia’s Forest Economy
Example text
Baldwin’s conclusion is that the local development impacts of this type of plantation investment are limited. The plantation offers some employment at higher wages than the local average and generates exports. However, the provision of relatively high-wage income to a few serves to underline income disparities and the sense of a dual economy, whereas export income is offset by imports and the repatriation of profits plus any tax concessions the plantation may receive. The linkages or multiplier effects the plantation generates for the surrounding economy are likely to be meagre.
For some regions, diversification may be further enhanced by footloose activities and by the achievement of a sufficient population size, wealth, and degree of urbanization that facilitate various kinds of agglomeration of scale, allowing both for a deepening of the division of labour and for greater propensities to innovate. On the other hand, resources may run out, cheaper resources may be found in other regions, substitute products may be developed with different location requirements, the need for backward and forward linkages may lessen, and the size of local consumer markets may remain relatively small and even stagnant.
The contribution of staples to Canadian economic development, and most particularly in understanding Canada’s global role, has long been recognized (Aitken 1961; Innis 1967; Mackintosh 1967; Marshall et al. 1936; Clement and Williams 1989). In the conventional or orthodox view, staple development is simply a response to the dictates of comparative advantage. In this view, staples have provided Canada with an inevitable and appropriate trajectory of development and basis for diversification. The Innisian view, on the other hand, interprets staple exploitation within the framework of creative destruction, of instability and crisis, in which the manner of exploitation is itself subject to policy.