Linkage Dynamics and Natural Resources: Diversification and Catch-Up

Abstract

There is very broad consensus to the effect that resource-rich countries cannot rely on natural resource products and exports for development. The structural change that underpins development requires economic diversification such that ever-larger shares of labor are located in higher value-added activities in manufacturing and services. What is far more contentious is whether resource-based products provide a base from which higher value-added activities can develop, and if so, what policies are likely to be most effective in this regard. These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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