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Unraveling the Network of the Extractive Industries

Lenin Balza, Camilo De Los Rios Rueda (), Alfredo Guerra, Luis Herrera-Prada and Osmel Manzano Mazzali ()

No 11158, IDB Publications (Working Papers) from Inter-American Development Bank

Abstract: This paper analyzes extractive industries in Colombia and their connections to other economic activities in the country. We use detailed social security data on all formal employees to create an industry-relatedness measure using labor flows between industries. Drawing on the vast network analysis literature, we exploit centrality measures to reveal the importance of the extractive sector among Colombian industries. Our results show that extractive industries are well connected within the Colombian industrial network, and that they are central overall and within their clusters. We also find that extractive industries have stronger linkages with manufacturing and agriculture than with other sectors. Finally, a higher relatedness to extractive activities is correlated with lower levels of employment, specially of female workers.

Keywords: Latin America; extractive industries; Network Analysis; Labor Flows (search for similar items in EconPapers)
JEL-codes: C65 J24 O54 Q30 (search for similar items in EconPapers)
Date: 2021-04
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