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Outgrowing Resource Dependence: Theory and Evidence

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  • Will Martin

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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  • Will Martin, 2002. "Outgrowing Resource Dependence: Theory and Evidence," Working Papers Central Bank of Chile 143, Central Bank of Chile.
    • Handle: RePEc:chb:bcchwp:143
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    Cited by:

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    2. World Bank, 2002. "Pakistan Development Policy Review : A New Dawn?," World Bank Publications - Reports 15425, The World Bank Group.
    3. Torres Fuchslocher, Carlos, 2007. "The Role and Development of Technology-Intensive Suppliers in Resource-Based Economies: A Literature Review," GIGA Working Papers 60, GIGA German Institute of Global and Area Studies.
    4. Ricardo Caballero G, 2002. "Coping With Chile’s External Vulnerability: A Financial Problem," Journal Economía Chilena (The Chilean Economy), Central Bank of Chile, vol. 5(1), pages 11-36, April.

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