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Resource based industrialisation: evidence from the Iron-Ore project in Brazil

Author

Listed:
  • Guendalina Anzolin

    (PHD Candidate, Department of Economics, Society & Politics, Università di Urbino "Carlo Bo")

Abstract

This paper aims to engage in the contemporary debate around the opportunity to diversify and upgrade a country?s economic system through the contribution of natural resource sectors. Adopting a revisitation of Hirschman?s linkage theory, the analysis looks at mining arguing that the outsourcing process changed the dynamics of the sector, which is now characterised by the promotion of high-level technology and innovation. By focusing on the Brazilian mining sector, the development of consumption and backward linkages is examined in relation to the S11D iron ore project. The specificity of the case presents an in-depth analysis, permitting a caseby-case, one size-does-not-fit-?all evaluation approach, which is crucial in formulating appropriate policy solutions to problems facing developing economies. It is argued that, overall, mining had a positive impact on the region where it operates, with strong consumption linkages. Nonetheless, due to an absent formal public policy, while backward linkages related to innovation and knowledge services are well--??developed and very often at the technological frontier, the ones related to capital goods are weak and in the hands of foreigner subsidiaries Length: 31 pages

Suggested Citation

  • Guendalina Anzolin, 2018. "Resource based industrialisation: evidence from the Iron-Ore project in Brazil," Working Papers 1804, University of Urbino Carlo Bo, Department of Economics, Society & Politics - Scientific Committee - L. Stefanini & G. Travaglini, revised 2018.
  • Handle: RePEc:urb:wpaper:18_04
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    File URL: http://www.econ.uniurb.it/RePEc/urb/wpaper/WP_18_04.pdf
    File Function: First version, 2018
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    References listed on IDEAS

    as
    1. Alsharif, Nouf & Bhattacharyya, Sambit & Intartaglia, Maurizio, 2017. "Economic diversification in resource rich countries: History, state of knowledge and research agenda," Resources Policy, Elsevier, vol. 52(C), pages 154-164.
    2. Nouf Alsharif & Sambit Bhattacharyya & Maurizio Intartaglia, 2016. "Economic Diversification in Resource Rich Countries: Uncovering the State of Knowledge," Working Paper Series 09816, Department of Economics, University of Sussex Business School.
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    More about this item

    Keywords

    industrial policy; structural change; natural resources; value-chain;
    All these keywords.

    JEL classification:

    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
    • O25 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Industrial Policy
    • Q32 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Exhaustible Resources and Economic Development
    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements

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