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Outgrowing resource dependence theory and some recent developments

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Martin, Will

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Abstract

Many policy makers are concerned about dependence on resource exports. This paper examines four changes that reduce thisdependence: (i) accumulation of capital and skills; (ii) changes in protection policy, particularly reductions in the burden of protection on exporters; (iii) differential rates of technical change; and (iv) declines in transport costs. 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 The World Bank in its series Policy Research Working Paper Series with number 3482.

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Date of creation: 01 Jan 2005
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Handle: RePEc:wbk:wbrwps:3482

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Keywords: Environmental Economics&Policies Economic Theory&Research Fiscal&Monetary Policy Payment Systems&Infrastructure Decentralization Economic Theory&Research Environmental Economics&Policies TF054105-DONOR FUNDED OPERATION ADMINISTRATION FEE INCOME AND EXPENSE ACCOUNT Pro-Poor Growth and Inequality Fiscal&Monetary Policy

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