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Variegated dependence: The geographically differentiated economic outcomes of resource-based development in Peru, 2001-2015

Author

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  • José Carlos Orihuela

    (Departamento de Economía de la Pontificia Universidad Católica del Perú)

  • Victor Gamarra Echenique

    (Departamento de Economía de la Pontificia Universidad Católica del Perú)

Abstract

The economic impacts of resource-based development are distributed unevenly across national space, and not even mining regions experience economic development in the same way. We build on the methodology of Rehner et. al. (2014) to typify resource-based economic development in Peru in the period 2001- 2015 and compare it with the case of mineral-abundant Chile. What we find is a nuanced version of the same dependency-related resource curse phenomenon. With the commodity cycle: (i) export specialization is not the same in all places; (ii) regional growth volatility is much higher in Peru than in Chile; (iii) the Dutch disease does not clearly manifest itself; and therefore (iv) economic dependence within Peru is variegated. At the national level, gold-and-copper-dependent Peru is not as vulnerable as copper-dependent Chile to external shocks. At the subnational level, outside Lima in particular, dependence-related volatility can be very high for clusters of regions. The results of the quantitative analysis are attuned to a theoretical framework of variegated dependence, which, while acknowledging the centrality of the center-and-periphery supranational structure for economic development, attributes variation in resource curse phenomena to subnational differences across space and over time in economic- geography configurations and institutional regimes. JEL Classification-JEL: F43 , O11 , O18 , Q33 , Q34 , Q37 , R58 Keywords: Dependence, Regional Development, Dutch disease, Export Specialization, Institutions, Resource Curse

Suggested Citation

  • José Carlos Orihuela & Victor Gamarra Echenique, 2018. "Variegated dependence: The geographically differentiated economic outcomes of resource-based development in Peru, 2001-2015," Documentos de Trabajo / Working Papers 2018-458, Departamento de Economía - Pontificia Universidad Católica del Perú.
    • Handle: RePEc:pcp:pucwps:wp00458
    DOI: 10.18800/2079-8474.0458
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    More about this item

    Keywords

    dependence; regional development; dutch disease; export specialization; institutions; resource curse;
    All these keywords.

    JEL classification:

    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • Q33 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Resource Booms (Dutch Disease)
    • Q34 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Natural Resources and Domestic and International Conflicts
    • Q37 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Issues in International Trade
    • R58 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Regional Development Planning and Policy

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