Template-type: ReDIF-Paper 1.0
Author-Name: Calzada Olvera, Beatriz
Author-Email: calzada@merit.unu.edu
Author-Workplace-Name: UNU-MERIT
Author-Name: Foster-McGregor, Neil
Author-Email: foster@merit.unu.edu
Author-Workplace-Name: UNU-MERIT
Title: What is the potential of natural resource based industrialisation in Latin 
	 America? An Input-Output analysis of the extractive sectors
Abstract: Several case studies have analysed the potential of natural resource 
	 (NR) based industrialisation, a process based on diversification towards 
	 high value-added products, in the Latin American region. However, there 
	 is limited evidence on how the development of productive linkages - a 
	 key aspect of this strategy - behave at the country level. Based on 
	 input-output analysis, this paper provides a clearer picture of the 
	 extent and evolution of productive linkages of NR sectors across a 
	 sample of middle- and high-income countries in Latin America as well as 
	 in other developing and developed regions. The paper focuses on the 
	 degree to which extractive industries, i.e. oil, gas, and mining, are 
	 connected to the rest of the economy by studying both backward and 
	 forward linkages using OECD IO data. It also makes a distinction between 
	 local and foreign inputs to account for the level of integration that 
	 these sectors have into global value chains and/or import dependence. 
	 Furthermore, it tries to identify whether the importance of the 
	 extractive sectors in exports and total economic output is related to 
	 the level of intersectoral linkages. We find that in most countries 
	 intersectoral linkages have become smaller despite the expansion of the 
	 extractive sector suggesting a higher level of enclaveness as predicted 
	 by the resource curse literature.
Classification-JEL: O13, O14, O54, O57, L71, D57
Keywords: natural resources, Latin America, mining, extractive, resource boom,
	 industrial linkages
Series: UNU-MERIT Working Papers
Creation-Date: 20180227
Number: 2018-015
File-URL: https://unu-merit.nl/publications/wppdf/2018/wp2018-015.pdf
File-Format: application/pdf
File-Size: 275 Kb
Handle: RePEc:unm:unumer:2018015