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Outgrowing Resource Dependence: Theory and Evidence

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Will Martin

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Abstract

Many policy makers are concerned about dependence on resource exports. This paper examines three changes that reduce this dependence: (i) accumulation of capital and skills; (ii) changes in protection policy, particularly reductions in the burden of protection on exporters; and (iii) differential rates of technical change. Developing countries as a group have made enormous progress in diversifying their exports away from resources in recent decades, a development that appears to have been aided by accumulation of capital and skills and by dramatic reductions in the cost of protection to exporters, but slowed down by technological advances that favored agriculture.

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Paper provided by Central Bank of Chile in its series Working Papers Central Bank of Chile with number 143.

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Date of creation: Feb 2002
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Handle: RePEc:chb:bcchwp:143

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  1. David S. Jacks, Kevin H. O'Rourke and Jeffrey G. Williamson, 2009. "Commodity Price Volatility and World Market Integration since 1700," The Institute for International Integration Studies Discussion Paper Series iiisdp284, IIIS. [Downloadable!]
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  2. Daniel Lederman & William Maloney, 2002. "Open Questions about the Link Between Natural Resources and Economic Growth: Sachs and Warner Revisited," Working Papers Central Bank of Chile 141, Central Bank of Chile. [Downloadable!]
  3. Carlos Torres Fuchslocher, 2007. "The Role and Development of Technology-Intensive Suppliers in Resource-Based Economies: A Literature Review," GIGA Working Paper Series 60, GIGA German Institute of Global and Area Studies. [Downloadable!]
  4. Sambit Bhattacharyya & Jeffrey G. Williamson, 2009. "Commodity Price Shocks and the Australian Economy since Federation," CEPR Discussion Papers 605, Centre for Economic Policy Research, Research School of Social Sciences, Australian National University. [Downloadable!]
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