Browsing by Autor "Sara Torregrosa Hetland"

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Natural Resources Curse in the long run? Bolivia, Chile and Peru in the Nordic countries&rsquo; mirror
(2018) Cristián Ducoing; José Peres‐Cajías; Marc Badia‐Miró; Ann-Kristin Bergquist; Carlos Contreras; Kristin Ranestad; Sara Torregrosa Hetland
Were there extreme differences between Latin American and Nordic countries in the 19th century? Several economic indicators suggest the right answer is no. In the year 1850, the GDP per capita ratio between, for example, Bolivia and Sweden was 0.7; in 2010 this ratio had widened to 0.12. How these extremely high differences are possible between countries with similarly enormous natural resources endowments? The aim of this article is to compare public policies and economic indicators related with Natural Resources (NNRR) management in three Latin American countries (Bolivia, Chile and Peru) and two Nordic countries (Norway and Sweden) in a long-term perspective. The article analyses the following components of economic development: i) the composition of exports throughout time; ii) economic linkages between the export sector and the rest of the economy; iii) the composition of taxes; iv) human capital formation and the accumulation of knowledge. The comparison suggests new areas on the determinants of successful management of natural resources and the countries' ability to escape from the so-called resource curse.
Natural Resources Curse in the Long Run? Bolivia, Chile and Peru in the Nordic Countries’ Mirror
(Multidisciplinary Digital Publishing Institute, 2018) Cristián Ducoing; José Peres‐Cajías; Marc Badia‐Miró; Ann-Kristin Bergquist; Carlos Contreras; Kristin Ranestad; Sara Torregrosa Hetland
The new estimates of the Maddison Project show that GDP per capita ratio at purchasing power parity (ppp) between Bolivia and Finland has changed from 0.68 ca. 1850 to 0.16 in 2015; similarly, that between Chile and Norway from 0.65 to 0.28. The aim of this article is to present a review of the literature and available quantitative evidence to understand how these extreme differences became possible between countries with similarly enormous natural resource endowments. Specifically, the article seeks to: (a) identify some stylized facts that may help understand the divergence between Andean and Nordic countries; (b) identify key historical processes that explain the divergent effect of natural resource abundance in Andean and Nordic economies. In order to achieve these objectives, four topics are covered: GDPpc, population, trade and taxation. The analysis comprises three Nordic countries (Finland, Norway and Sweden) and three Andean countries (Bolivia, Chile and Peru) from the mid-Nineteenth Century to present day. The sample size, time span covered and thematic approach provide new evidence regarding previous work.