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

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

No 1804, Working Papers from University of Urbino Carlo Bo, Department of Economics, Society & Politics - Scientific Committee - L. Stefanini & G. Travaglini

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

Keywords: industrial policy; structural change; natural resources; value-chain (search for similar items in EconPapers)
JEL-codes: F21 O14 O25 Q32 (search for similar items in EconPapers)
Date: 2018, Revised 2018
New Economics Papers: this item is included in nep-hme, nep-ino and nep-ppm
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http://www.econ.uniurb.it/RePEc/urb/wpaper/WP_18_04.pdf First version, 2018 (application/pdf)

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