Stephen Habar Dependency Theory

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Stephen Habar stance on the Dependency theory was that the “dependency theory had minimal impact.” He saw that there were three main problems with the theory. The first problem was that the theory implied by the dependentistas was that the foreign direct investment caused underdevelopment and “decapitalized” the society rather than have forward linkage. The second problem was that it rejected the notion of ideas being proven with scientific evaluation, dependentistas often generalized situations and for political and ideological reason were intent on proving the theory correct. The final problem of the theory was as Habar states, “that its central tenets were largely inconsistent with the empirical facts” . All the articles found in the …show more content…
This amount of track by the end of the period would reach to 19,748. The internal market also rose in 1895 due to the railroads opening up the ability for people to acquire goods. These railroads systems was the reason for such a boom in exports. During 1878- 1880 there was only one port that was accessible to the rail ways and that was Veracruz, but once the railways had connected other cities such as Tampico and Progreso in Yucatan they were able to boom. Cardenas states that with the use of railroads, “the domestic market began its integration in a profound way and new areas of the country were developed.” The development of the railroads also helped out mining that would have had low productivity and also helped out the possibility of exporting large quantities of several minerals and other precious metals. Cardenas states that, “Tonnage of gold and silver increased 5.4 percent from 1877 to 1895” . An example of the export amount of silver and gold during 1899 can be found in the National Treasury Department, The Foreign Commerce and Navigation of the United States, states that gold was being imported at value of 668,856 to New York, New York and silver was being imported 5,894,999 to Paso del Norte, …show more content…
Before the railroad there was economy based its movement off of wagons and mules other than the railway that connect Veracruz to Mexico City in 1873. If this was to continue through the Porfiriato it would have been a huge lose to the economy. With the creation of the railroad led to cheaper transportation not only for passengers but also for transporting goods. The railroad had social savings that had inward implications such as improving product and labor market integration. One example Summerhill uses is that in the case of agriculture in product market and how farmers will specialize in crops that are more efficient for them to grow. Another example in the perspective of labor market is that it advanced the mobility of workers. These effects of the railroad according to Summerhill is that it created a larger economy open to anyone. William Summerhill States in his essay that, “By this measure, railroads had succeeded in freeing an enormous quantity of labor and capital from transport, which was then employed in other sectors” Another example of the railroads expanding the economy is shown by in 1885 less than twenty-five percent were export bound but by 1910 it had risen to more than fifty percent. Also by 1910 the GDP of exports had risen by 17.5 percent. The amount of the railroads opening up the market and creating social

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