Argentina, Australia and Canada: Studies in Comparative Development 1870–1965
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Ultimately, the most important contribution of the study of development of lands of recent settlement is in the area of an analysis of transnational networks and globalization. Keywords: lands of recent settlement , development , frontier development , staple theory of growth , institutions , culture , geography , colonialism , transnational networks , globalization.
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Argentina, Australia and Canada : studies in comparative development, 1870-1965
Request Username Can't sign in? Forgot your username? Enter your email address below and we will send you your username. The author states that these are two "central, although by no means exhaustive, explanations.
At the end, Maloney makes a case for the ISI policies as a consequence of the low learning capacity, but he leaves the door open to other factors that, in turn, led to a lower learning capacity and the wrong policy decisions. While I agree that looking [End Page ] into these factors represents another research project, one has to wonder whether the institutions surrounding the resource sector and the type of resources had any impact on the two variables explained here.
In Figures 10 to 13, I graph the relationship between resource abundance and resource dependence, with each figure depicting a different primary product—namely, agricultural raw materials, food, fuels, and minerals. For agricultural raw materials and food, there is a relatively clear relationship: the position as a resource-abundant country reflects the position as a resource-dependant one correlations in both cases are above 0. In a recent paper written with Roberto Rigobon, my coauthor and I show that being dependant on these goods did not have a negative impact on growth, so a country has nothing to worry about if it is abundant in these resources.
Countries like Australia and Canada lie below the 45 degree line, while Latin American countries tend to lie above it. Our paper shows that this type of dependency was associated with low growth. The fact that the problem arises in countries with abundant minerals and fuel suggests that the rent accrued from the resources and, therefore, the associated institutions are the immediate suspects for causing the problem.
Nevertheless, one should not rule out the complete institutional framework supporting the sector: property rights in the sector, state intervention in the sector, international agreements such as belonging to international cartels , and so forth.