One of the key characteristics of a periphery country is the fact that its economy is largely defined by resource extraction or agriculture. These raw materials have a tendency to be inelastic, and therefore not very profitable for the countries that produce …show more content…
If a boom is large enough to enable a periphery country to take off into a semi-periphery country, then the subsequent bust will likely be large enough to substantially cut profits and return the country into the periphery. The beaver pelt boom and bust is a prime example of this. Beaver pelts were a highly sought and very profitable material to specialize in when hats made of beaver were in fashion. When fashion changed a large bust occurred and the market heavily declined as all those that had specialized in pelts had to turn elsewhere to make a profit (Swartz). The nature of the boom and bust cycle makes it very difficult for a periphery country with limited types of raw materials to advance into the semi-periphery for a substantial period of