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Globalization and the changing institution for sustainability: The case of the Salmon farming industry in Chile

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  • Iizuka, Michiko

    ()
    (UNU-MERIT/MGSoG)

  • Katz, Jorge

    ()
    (Universidad de Chile)

Abstract

The recent expansion of global demand for natural resources has created a production boom in countries endowed with natural resources. Increasing global trade and investment - globalization - offer an important opportunity for developing countries as the global flow of commodities often accompany knowledge and information to increase productivity to facilitate economic development. This positive feature of globalization has some serious drawbacks when the country is not equipped with an institution to ensure environmental sustainability. This paper sought to demonstrate this through the examination of the Chilean salmon farming case. The Chilean salmon farming industry has grown dramatically since the mid 1980s to become the number two exporter of farmed salmon in the world after Norway. The sector, however, suffered a decline in production volume due to the sanitary crisis in 2007. The case also tries to capture the on-going efforts made by the government to strengthen the institution to prevent further occurrences of environmental and sanitary crises.

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Bibliographic Info

Paper provided by United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT) in its series MERIT Working Papers with number 063.

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Date of creation: 2012
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Handle: RePEc:unm:unumer:2012063

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Related research

Keywords: Globalization; Environmental sustainability; Institution; Innovation; Technological change; Chile;

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  1. Nelson, Richard R. & Sampat, Bhaven N., 2001. "Making sense of institutions as a factor shaping economic performance," Journal of Economic Behavior & Organization, Elsevier, vol. 44(1), pages 31-54, January.
  2. Kikuchi, Masao & Hayami, Yujiro, 1980. "Inducements to Institutional Innovations in an Agrarian Community," Economic Development and Cultural Change, University of Chicago Press, vol. 29(1), pages 21-36, October.
  3. Nelson, Richard R., 2008. "What enables rapid economic progress: What are the needed institutions," Research Policy, Elsevier, vol. 37(1), pages 1-11, February.
  4. Iizuka, Michiko & Katz, Jorge, 2010. "Natural resource industries, 'tragedy of the commons' and the case of Chilean salmon farming," MERIT Working Papers 061, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
  5. H. Schmitz & P. Knorringa, 2000. "Learning from Global Buyers," Journal of Development Studies, Taylor & Francis Journals, vol. 37(2), pages 177-205.
  6. Eggertsson, Thráinn, 2009. "Knowledge and the theory of institutional change," Journal of Institutional Economics, Cambridge University Press, vol. 5(02), pages 137-150, August.
  7. Boettke, Peter & Fink, Alexander, 2011. "Institutions first," Journal of Institutional Economics, Cambridge University Press, vol. 7(04), pages 499-504, December.
  8. Fu, Xiaolan & Gong, Yundan, 2011. "Indigenous and Foreign Innovation Efforts and Drivers of Technological Upgrading: Evidence from China," World Development, Elsevier, vol. 39(7), pages 1213-1225, July.
  9. Lee, Keun & Lim, Chaisung, 2001. "Technological regimes, catching-up and leapfrogging: findings from the Korean industries," Research Policy, Elsevier, vol. 30(3), pages 459-483, March.
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