Export diversification and resource-based industrialization : the case of natural gas
For small resource-rich developing economies, specialization in raw exports is usually considered to be detrimental to growth and Resource-Based Industrialization (RBI) is often advocated to promote export diversification. This paper develops a new methodology to assess the performance of these RBI policies. We first formulate an adapted mean-variance portfolio model that explicitly takes into consideration: (i) a technology-based representation of the set of feasible export combinations and (ii) the cost structure of the resource processing industries. Second, we provide a computationally tractable reformulation of the resulting mixed-integer nonlinear optimization problem. Finally, we present an application to the case of natural gas, comparing current and efficient export-oriented industrialization strategies of nine gas-rich developing countries.
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|Date of creation:||01 May 2014|
|Publication status:||Published in European Journal of Operational Research, Elsevier, 2014, 237 (3), pp.1067-1082. <10.1016/j.ejor.2014.02.043>|
|Note:||View the original document on HAL open archive server: https://hal-ifp.archives-ouvertes.fr/hal-01031565|
|Contact details of provider:|| Web page: https://hal.archives-ouvertes.fr/|
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