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A dependent economy model with productive linkages and the pattern of specialization in resource abundant countries

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  • Serino, Leandro

    (Universidad Nacional de General Sarmiento)

Abstract

This paper presents a dependent economy model extended to consider the role of productive linkages. The model shows that a positive natural resource shock, as the one experienced by South American countries in recent years, can encourage productive and export diversification, in contrast to the predictions of conventional models. This can occur when the shock promotes the expansion of productive linkages, which provide infrastructure and other specialised services that are essential to compete in modern manufacturing production. Diversification may occur directly in countries with natural resource intensive industries with productive linkages, or indirectly through policies to promote investment in infrastructure in the context of positive resource shocks.

Suggested Citation

  • Serino, Leandro, 2009. "A dependent economy model with productive linkages and the pattern of specialization in resource abundant countries," Revista de Economía Política de Buenos Aires, Universidad de Buenos Aires. Facultad de Ciencias Económicas., issue 5-6, pages 121-131, December.
    • Handle: RePEc:ake:repba1:y:2009:i:5-6:p:121-131
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    Keywords

    dependent economy; natural resources;

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