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Economic Development, Structural Change And Natural Resource Booms: A Structuralist Perspective

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  • Alberto Botta

Abstract

In this paper we present a structuralist two‐sector model on economic development, structural change and natural resource booms. We describe a multiple equilibria scenario, in which manufacturing development is the main source of economic progress. Natural resource booms, by modifying the productive structure of the economy, may set destabilizing forces. De‐industrialization processes may take place, confining developing countries in poverty traps. Public intervention in the economic sphere, both through short‐run macro policies and through long‐run development strategies, may help to free the economy from poverty traps and to foster the development process.

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  • Alberto Botta, 2010. "Economic Development, Structural Change And Natural Resource Booms: A Structuralist Perspective," Metroeconomica, Wiley Blackwell, vol. 61(3), pages 510-539, July.
    • Handle: RePEc:bla:metroe:v:61:y:2010:i:3:p:510-539
    DOI: 10.1111/j.1467-999X.2009.04077.x
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    2. Mania, Elodie & Rieber, Arsène, 2019. "Product export diversification and sustainable economic growth in developing countries," Structural Change and Economic Dynamics, Elsevier, vol. 51(C), pages 138-151.
    3. Charles Shaaba Saba & Nicholas Ngepah, 2020. "Empirical Analysis of Military Expenditure and Industrialisation Nexus: A Regional Approach for Africa," International Economic Journal, Taylor & Francis Journals, vol. 34(1), pages 58-84, January.
    4. Gui-Diby, Steve Loris & Renard, Mary-Françoise, 2015. "Foreign Direct Investment Inflows and the Industrialization of African Countries," World Development, Elsevier, vol. 74(C), pages 43-57.
    5. Serigne Bassirou Lo & Lassana Cissokho, 2023. "Financial development, institutions and industrialization in sub‐Saharan Africa," African Development Review, African Development Bank, vol. 35(2), pages 152-164, June.
    6. Michael Appiah & Bright Akwasi Gyamfi & Tomiwa Sunday Adebayo & Festus Victor Bekun, 2023. "Do financial development, foreign direct investment, and economic growth enhance industrial development? Fresh evidence from Sub-Sahara African countries," Portuguese Economic Journal, Springer;Instituto Superior de Economia e Gestao, vol. 22(2), pages 203-227, May.
    7. Elodie Mania & Arsène Rieber, 2019. "Product export diversification and sustainable economic growth in developing countries," Post-Print hal-02297128, HAL.

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