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Revisiting the Natural Resource Curse: Backward Linkages for Export Diversification and Structural Economic Transformation

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  • Maria Savona
  • Filippo Bontadini

Abstract

This article revisits and empirically tests the conjecture that specialization in natural resource industries (NRI) might not necessarily be a ‘curse’ for developing countries if it generates opportunities for export diversification in backward‐linked sectors à la Hirschman. The article systematizes the evolution of the debate around the NRI ‘curse’. Then it empirically tests whether NRI might represent a sufficient ‘domestic representative demand’ à la Linder to favour diversification into backward‐linked sectors such as knowledge‐intensive business services and high‐tech manufacturing. It focuses on the former and discusses the new opportunities for export diversification led by virtuous pathways of domestic structural change. It finds novel, quantitative empirical support for this conjecture, which complements extant qualitative literature and discusses implications that revisit the NRI curse debate.

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  • Maria Savona & Filippo Bontadini, 2023. "Revisiting the Natural Resource Curse: Backward Linkages for Export Diversification and Structural Economic Transformation," Development and Change, International Institute of Social Studies, vol. 54(2), pages 378-421, March.
    • Handle: RePEc:bla:devchg:v:54:y:2023:i:2:p:378-421
    DOI: 10.1111/dech.12754
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    2. Eduardo Hernandez-Rodriguez, 2024. "Technological diversification through global value chains in European regions," Papers in Evolutionary Economic Geography (PEEG) 2429, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Sep 2024.
    3. Bontadini, Filippo & Evangelista, Rinaldo & Meliciani, Valentina & Savona, Maria, 2024. "Technology, global value chains and functional specialisation in Europe," Research Policy, Elsevier, vol. 53(2).

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