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

Author

Listed:
  • 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.

Suggested Citation

  • Iizuka, Michiko & Katz, Jorge, 2012. "Globalization and the changing institution for sustainability: The case of the Salmon farming industry in Chile," MERIT Working Papers 063, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
  • Handle: RePEc:unm:unumer:2012063
    as

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    File URL: https://www.merit.unu.edu/publications/wppdf/2012/wp2012-063.pdf
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    References listed on IDEAS

    as
    1. 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.
    2. Michiko Iizuka & Jorge Katz, 2011. "Natural Resource Industries, ‘Tragedy of the Commons’ and the Case of Chilean Salmon Farming," Institutions and Economies (formerly known as International Journal of Institutions and Economies), Faculty of Economics and Administration, University of Malaya, vol. 3(2), pages 259-286, July.
    3. 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.
    4. 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.
    5. H. Schmitz & P. Knorringa, 2000. "Learning from Global Buyers," Journal of Development Studies, Taylor & Francis Journals, vol. 37(2), pages 177-205.
    6. Fu, Xiaolan & Pietrobelli, Carlo & Soete, Luc, 2011. "The Role of Foreign Technology and Indigenous Innovation in the Emerging Economies: Technological Change and Catching-up," World Development, Elsevier, vol. 39(7), pages 1204-1212, July.
    7. Boettke, Peter & Fink, Alexander, 2011. "Institutions first," Journal of Institutional Economics, Cambridge University Press, vol. 7(04), pages 499-504, December.
    8. Nelson, Richard R., 2008. "What enables rapid economic progress: What are the needed institutions," Research Policy, Elsevier, vol. 37(1), pages 1-11, February.
    9. Eggertsson, Thráinn, 2009. "Knowledge and the theory of institutional change," Journal of Institutional Economics, Cambridge University Press, vol. 5(02), pages 137-150, August.
    10. 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.
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    More about this item

    Keywords

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

    JEL classification:

    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth
    • O20 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - General
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • O54 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Latin America; Caribbean

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