IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/61665.html
   My bibliography  Save this paper

The Industry oriented Asian Tigers and the Natural Resource based Pacific Alliance Economic Growth Models

Author

Listed:
  • Briceño Avalos, Hernán Ricardo

Abstract

The aim of this thesis is provide “Pacific Alliance” of Latin America with a bundle of recommendations to make a successful economic integration with “Asian Pacific” region. It seems that following the Comparative Advantage theory developed by David Ricardo (1772-1823), under the incipient technological progress has damaged some developing economies, to such an extent that their specialization on exploiting and exporting raw materials are condemned them to live in a vicious circle. This is a compelling situation between getting high rents from natural resource exports, low investment in Research & Development to innovation, reaching also poor Human Development Indexes (“The Curse of Natural Resources”). On the other hand, there is a virtuous circle between manufacture exports by developing high-tech industries, high investment in Research & Development to innovate, reaching also high Human Development Indexes; such as Asian Tigers in the last decades (“Learning by Exporting”). These two central hypotheses have been testing under cross section econometric assessment, including more than one hundred countries for the three last decades (1981-2010). There are evidences to fulfilling both. The exports of Ores and Metals and other raw material oriented goods have negative impacts, while manufacture exports positive impact on the economic growth. Similarly, service exports have led the economic growth in the last decades due to Technology & Communication and International Commercial activities are increasing faster. They are significant and robust explanatory variables. Therefore, governments from raw material export oriented countries, like “Pacific Alliance”, should take into account Pragmatic Innovation Agenda and Technology Policies to get better sustainable living conditions. Otherwise, they will still suffering from the volatility of commodities demand and prices, low Research & Development investment, poor Human Development Index and social conflicts.

Suggested Citation

  • Briceño Avalos, Hernán Ricardo, 2013. "The Industry oriented Asian Tigers and the Natural Resource based Pacific Alliance Economic Growth Models," MPRA Paper 61665, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:61665
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/61665/1/MPRA_paper_61665.pdf
    File Function: original version
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Romer, Paul M, 1986. "Increasing Returns and Long-run Growth," Journal of Political Economy, University of Chicago Press, vol. 94(5), pages 1002-1037, October.
    2. Nelson, Richard R & Pack, Howard, 1999. "The Asian Miracle and Modern Growth Theory," Economic Journal, Royal Economic Society, vol. 109(457), pages 416-436, July.
    3. Rudiger Dornbusch & Sebastian Edwards, 1991. "The Macroeconomics of Populism in Latin America," NBER Books, National Bureau of Economic Research, Inc, number dorn91-1.
    4. Robert J. Barro, 1998. "Determinants of Economic Growth: A Cross-Country Empirical Study," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262522543, December.
    5. Ricardo Hausmann & Bailey Klinger, 2008. "Growth Diagnostics: Perú," Research Department Publications 2005, Inter-American Development Bank, Research Department.
    6. Hendrik Van den Berg, 2012. "Economic Growth and Development," World Scientific Books, World Scientific Publishing Co. Pte. Ltd., number 8321, February.
    7. Ricardo Hausmann & Jason Hwang & Dani Rodrik, 2007. "What you export matters," Journal of Economic Growth, Springer, vol. 12(1), pages 1-25, March.
    8. Patricio Rojas & Eduardo López & Susana Jiménez, 1997. "Determinantes del Crecimiento y Estimación del Producto Potencial en Chile: El Rol del Comercio," Working Papers Central Bank of Chile 24, Central Bank of Chile.
    9. Rudiger Dornbusch & Sebastian Edwards, 1991. "The Macroeconomics of Populism," NBER Chapters, in: The Macroeconomics of Populism in Latin America, pages 7-13, National Bureau of Economic Research, Inc.
    10. Ricardo Hausmann & Bailey Klinger, 2008. "Growth Diagnostics: Perú," Research Department Publications 2005, Inter-American Development Bank, Research Department.
    11. Norman Loayza & Raimundo Soto, 2002. "The Sources of Economic Growth: An Overview," Central Banking, Analysis, and Economic Policies Book Series, in: Norman Loayza & Raimundo Soto & Norman Loayza (Series Editor) & Klaus Schmidt-Hebbel (Series Editor) (ed.),Economic Growth: Sources, Trends, and Cycles, edition 1, volume 6, chapter 1, pages 001-040, Central Bank of Chile.
    12. Keiko ITO, 2012. "Sources of Learning-by-Exporting Effects: Does Exporting Promote Innovation?," Working Papers DP-2012-06, Economic Research Institute for ASEAN and East Asia (ERIA).
    13. Branislav Saxa, 2008. "Learning-by-Exporting or Managerial Quality? Evidence from the Czech Republic," Economie Internationale, CEPII research center, issue 115, pages 109-139.
    14. Miguel Urrutia, 1991. "On the Absence of Economic Populism in Colombia," NBER Chapters, in: The Macroeconomics of Populism in Latin America, pages 369-391, National Bureau of Economic Research, Inc.
    15. World Bank, 2008. "Global Economic Prospects 2008 : Technology Diffusion in the Developing World," World Bank Publications - Books, The World Bank Group, number 6335.
    16. Ricardo Hausmann & Bailey Klinger, 2008. "Growth Diagnostics: Perú," Research Department Publications 2005, Inter-American Development Bank, Research Department.
    17. Steven Radelet & Jeffrey Sachs, 1998. "The Onset of the East Asian Financial Crisis," NBER Working Papers 6680, National Bureau of Economic Research, Inc.
    18. Jan Fagerberg & Manuel Godinho, 2003. "Innovation and catching-up," Working Papers 24, Centre for Technology, Innovation and Culture, University of Oslo.
    19. World Bank, 2013. "World Development Indicators 2013," World Bank Publications - Books, The World Bank Group, number 13191.
    20. Mikesell, Raymond F & Zinser, James E, 1973. "The Nature of the Savings Function in Developing Countries: A Survey of the Theoretical and Empirical Literature," Journal of Economic Literature, American Economic Association, vol. 11(1), pages 1-26, March.
    21. Sachs, Jeffrey D. & Warner, Andrew M., 2001. "The curse of natural resources," European Economic Review, Elsevier, vol. 45(4-6), pages 827-838, May.
    22. Paul M. Romer, 1994. "The Origins of Endogenous Growth," Journal of Economic Perspectives, American Economic Association, vol. 8(1), pages 3-22, Winter.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Fesseha Mulu GEBREMARIAM & Bizuayehu Daba FEYISA, 2019. "Assessing The Performance Of Industrial Parks (Ips) In Ethiopia: The Case Of Bole Lemi 1, Eastern Industry Zone And Hawassa Industrial Parks," Social Sciences and Education Research Review, Department of Communication, Journalism and Education Sciences, University of Craiova, vol. 6(1), pages 72-111, July.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. William W. Olney, 2022. "Intra-African trade," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 158(1), pages 25-51, February.
    2. Juan Ricardo Perilla Jimenez, 2019. "Mainstream and evolutionary views of technology, economic growth and catching up," Journal of Evolutionary Economics, Springer, vol. 29(3), pages 823-852, July.
    3. Steven Bond-Smith, 2024. "Diversifying Hawai‘i's Specialized Economy: A Spatial Economic Perspective," Economic Development Quarterly, , vol. 38(1), pages 40-59, February.
    4. Ignacio Amate-Fortes & Almudena Guarnido-Rueda & Agustin Molina-Morales, 2017. "Economic and Social Determinants of Human Development: A New Perspective," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 133(2), pages 561-577, September.
    5. Jesus Felipe & J. S. L. McCombie & Kaukab Naqvi, 2010. "Is Pakistan's Growth Rate Balance-of-Payments Constrained? Policies and Implications for Development and Growth," Oxford Development Studies, Taylor & Francis Journals, vol. 38(4), pages 477-496.
    6. Steven Bond-Smith, 2022. "Diversifying Hawai‘i’s specialized economy: A spatial economic perspective," Working Papers 2022-5, University of Hawaii Economic Research Organization, University of Hawaii at Manoa.
    7. González, Arturo & Ortigoza, Eduardo & Llamosas, Cecilia & Blanco, Gerardo & Amarilla, Raúl, 2019. "Multi-criteria analysis of economic complexity transition in emerging economies: The case of Paraguay," Socio-Economic Planning Sciences, Elsevier, vol. 68(C).
    8. Mussarat Khan, 2016. "Contribution of female human capital in economic growth: an empirical analysis of Pakistan (1972–2012)," Quality & Quantity: International Journal of Methodology, Springer, vol. 50(2), pages 709-728, March.
    9. Moaniba, Igam M. & Su, Hsin-Ning & Lee, Pei-Chun, 2019. "On the drivers of innovation: Does the co-evolution of technological diversification and international collaboration matter?," Technological Forecasting and Social Change, Elsevier, vol. 148(C).
    10. Reeg, Caroline, 2015. "Micro and small enterprises as drivers for job creation and decent work," IDOS Discussion Papers 10/2015, German Institute of Development and Sustainability (IDOS).
    11. Ricardo Hausmann & Jasmina Chauvin, 2015. "Moving to the Adjacent Possible: Discovering Paths for Export Diversification in Rwanda," Growth Lab Working Papers 55, Harvard's Growth Lab.
    12. Sebastian Edwards, 1996. "Public Sector Deficits and Macroeconomic Stability in Developing Countries," NBER Working Papers 5407, National Bureau of Economic Research, Inc.
    13. Rafael Santos, 2007. "Bogotá: the collapse of a political machine," Documentos CEDE 4011, Universidad de los Andes, Facultad de Economía, CEDE.
    14. Adami, Vivian Sebben & Antunes Júnior, José Antônio Valle & Sellitto, Miguel Afonso, 2017. "Regional industrial policy in the wind energy sector: The case of the State of Rio Grande do Sul, Brazil," Energy Policy, Elsevier, vol. 111(C), pages 18-27.
    15. Mirjam Praag & André Stel, 2013. "The more business owners, the merrier? The role of tertiary education," Small Business Economics, Springer, vol. 41(2), pages 335-357, August.
    16. Mary Hallward-Driemeier & Gita Khun-Jush & Lant Pritchett, 2014. "Deals versus Rules: Policy Implementation Uncertainty and Why Firms Hate It," NBER Chapters, in: African Successes, Volume I: Government and Institutions, pages 215-260, National Bureau of Economic Research, Inc.
    17. Fagerberg, Jan & Srholec, Martin & Verspagen, Bart, 2010. "Innovation and Economic Development," Handbook of the Economics of Innovation, in: Bronwyn H. Hall & Nathan Rosenberg (ed.), Handbook of the Economics of Innovation, edition 1, volume 2, chapter 0, pages 833-872, Elsevier.
    18. Osipian, Ararat, 2007. "Human capital—economic growth nexus in the former Soviet Bloc," MPRA Paper 8463, University Library of Munich, Germany.
    19. Zuzanna Helena Zarach & Aleksandra Parteka, 2023. "Productivity effects of trade in natural resources—comparison with mechanisms of technological specialisation," The World Economy, Wiley Blackwell, vol. 46(9), pages 2684-2706, September.
    20. Anders Oskar Kjøller‐Hansen & Lena Lindbjerg Sperling, 2020. "Measuring inclusive growth experiences: Five criteria for productive employment," Review of Development Economics, Wiley Blackwell, vol. 24(4), pages 1413-1429, November.

    More about this item

    Keywords

    Asian Tigers; Pacific Alliance; Natural Resource based Countries; Industrialized oriented Countries;
    All these keywords.

    JEL classification:

    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:61665. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Joachim Winter (email available below). General contact details of provider: https://edirc.repec.org/data/vfmunde.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.