Exportable commodities

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  • From Transforming or Reforming Capitalism - Chapter 3 - Lamb "Towards an Economic Theory of Community Economic Development": Exportable commodities are the basis of export theory, where regional advantages in production and transportation are used, often bolstered through government or external capital subsidies in infrastructure, and the community strengths, such as marketing organizations, credit and transport facilities, are enhanced. Total economic activity is based on exports (basic), with a non-export (non-basic) local economy. Cyclical sensitivities are determined by the elasticity of staples (eg essentials vs luxuries). The community's success is determined by the success of its exports, affected by fall in demand, exhaustion of a natural resource, uncompetitive resource costs or technological change. Transportation development or higher income may result in more (but uneven) export opportunities, bringing new capital.