The dynamics of resource-based economic development: evidence from Australia and Norway

Abstract

Australia and Norway have achieved modern levels of development as resourcebased economies, thus avoiding the so-called resource curse. Their ability to achieve this rested heavily on repeated diversification into new resource products and industries. These processes relied largely on innovation, confirming the close ties that have existed between resource-based industries and knowledgeproducing and disseminating sectors of society. We develop a resource-based diversification model that analyses the interaction between "enabling sectors" and resource industries and apply it to the historical experience of the two countries.

Technology Gap and Catching up in Economies Based on Natural Resources: The Case of Chile

“…This sample is made up by economies characterized for a NR specialized economic structure, high or medium-high income according to the WB classification, and high rates of growth between 1990 and 2008. The solution of the Cluster analysis is one group of countries (called SELECTED) made up by Argentina, Australia, Canada, Chile, Colombia, Kazakhstan, Mexico, Peru, Russia, and South Africa, which is consistent with other studies that analyze NR specialization and successful cases of development [5], [25], [39], [40], [43]- [45].…”

“…The opportunities to advance using knowledge from abroad also depend on the technology gap, because a closer proximity to leaders reduces the potential options for catching up. Authors such as Porter [15], Verspagen [9], Nelson [10], Castellacci [17], and Ville and Wicken [25], point out that in early stages of convergence, where countries face a wider technology gap, imitation is a main channel for economic development, while innovation become the most important driver for those in more advanced stages.…”

“…As already said, other assets along with physical investment are required to exploit successfully NR such as knowledge and technology [9], [25], [43], [46], [48]. The reason is that countries can improve the production of more value added products and services, to create new ones, or to reduce the costs through innovation, and the NR industries are not an exception.…”

A Review on the Resource Curse

“…The latter demonstrates that strong institutions lead to sound revenue management policies (Mehrara, 2008;Holden, 2013) which promote diversification and help to prevent the Dutch disease. (Ville and Wicken, 2013) Turning natural wealth into a blessing seems to be a question of public and private institutions alike. Common policy recommendations focus on the fundamentals of social development like equal access to land, primary education, or healthcare.…”

The Long Run Development of Chile and the Natural Resources Curse. Linkages, Policy and Growth, 1850-1950

“…Nevertheless, other work goes beyond the analysis of less developed countries analysing other countries such as Australia, following the discussion initiated by Gregory (1976) who defends the negative implications of Natural Resources on non-tradable sector and continued by Snape (1977), who was more sceptical about problems in a macrolevel dimension. 5 See David and Wright (1997) for the US, Greasley and Oxley (2010) for New Zealand, Mideksa (2013) for Norway and Ville and Wicken (2013) for Australia. For other countries see also Robinson et al (2006) and Auty (1997).…”