Interesting stuff, thanks for adding. I never know what to do with natural resources in the economic development story, so I usually just leave them out, but of course they can have negative effects like this. And yes, labor costs are important.
Yeah, I think trying to account for the dynamic effects of a significant natural resource endowment is not always easy, and neither is successfully making the transition from exporting unprocessed resources to doing more processing and other activities further up the value chain domestically.
That being said, I do think the China-West decoupling is an opportunity for some countries to start making that transition, especially places rich in critical minerals. And the same can be said with regard to the nearshoring/friendlyshoring trend in manufacturing.
Interesting stuff, thanks for adding. I never know what to do with natural resources in the economic development story, so I usually just leave them out, but of course they can have negative effects like this. And yes, labor costs are important.
Yeah, I think trying to account for the dynamic effects of a significant natural resource endowment is not always easy, and neither is successfully making the transition from exporting unprocessed resources to doing more processing and other activities further up the value chain domestically.
That being said, I do think the China-West decoupling is an opportunity for some countries to start making that transition, especially places rich in critical minerals. And the same can be said with regard to the nearshoring/friendlyshoring trend in manufacturing.