Specialization dynamics and natural resources abundance

Roberto Alvarez and Rodrigo Fuentes

Review of World Economics (Weltwirtschaftliches Archiv), 2012, vol. 148, issue 4, 733-750

Abstract: This paper uses a large sample of countries for the last four decades to document how specialization dynamics differ depending on the abundance of natural resources. We show interesting stylized facts on two main issues. First, we do not find evidence that comparative advantage in resource-intensive products is necessarily more persistent than comparative advantage in manufactured goods. Second, we analyze the interaction between specialization in manufacturing and natural resources abundance. Though it is less likely that resource-rich countries have comparative advantage in manufactured goods, the abundance of natural resources does not inhibit significant changes in specialization for these countries. Copyright Kiel Institute 2012

Keywords: Comparative advantage; Natural resources abundance; Industrialization; F100; O140 (search for similar items in EconPapers)
Date: 2012
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DOI: 10.1007/s10290-012-0130-5

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