Rights statement: This is an Accepted Manuscript of an article published by Taylor & Francis in Journal of Development Studies on 21/04/2016, available online: http://www.tandfonline.com/10.1080/00220388.2016.1160063
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Final published version
Research output: Contribution to Journal/Magazine › Journal article › peer-review
Research output: Contribution to Journal/Magazine › Journal article › peer-review
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TY - JOUR
T1 - Natural resources and small island economies
T2 - Mauritius and Trinidad and Tobago
AU - Auty, Richard Michael
N1 - This is an Accepted Manuscript of an article published by Taylor & Francis in Journal of Development Studies on 21/04/2016, available online: http://www.tandfonline.com/10.1080/00220388.2016.1160063
PY - 2017/2/1
Y1 - 2017/2/1
N2 - Historically, small economies, especially resource-rich ones, underperformed on average relative to their larger counterparts. Small island economies appear still more disadvantaged due to remoteness from both markets and agglomeration economies. Yet a comparison of two small island economies with similar initial conditions other than their mineral endowment suggests that policy outweighs size, isolation and resource endowment in determining economic performance. Resource-poor Mauritius adopted an unfashionable policy of export manufacturing that systematically eliminated surplus labour, which drove economic diversification that sustained rapid GDP growth and political maturation. Like most resource-rich economies, Trinidad and Tobago pursued policies that absorbed rent too rapidly, which impeded diversification and created an illusory prosperity vulnerable to collapse.
AB - Historically, small economies, especially resource-rich ones, underperformed on average relative to their larger counterparts. Small island economies appear still more disadvantaged due to remoteness from both markets and agglomeration economies. Yet a comparison of two small island economies with similar initial conditions other than their mineral endowment suggests that policy outweighs size, isolation and resource endowment in determining economic performance. Resource-poor Mauritius adopted an unfashionable policy of export manufacturing that systematically eliminated surplus labour, which drove economic diversification that sustained rapid GDP growth and political maturation. Like most resource-rich economies, Trinidad and Tobago pursued policies that absorbed rent too rapidly, which impeded diversification and created an illusory prosperity vulnerable to collapse.
U2 - 10.1080/00220388.2016.1160063
DO - 10.1080/00220388.2016.1160063
M3 - Journal article
VL - 53
SP - 264
EP - 277
JO - Journal of Development Studies
JF - Journal of Development Studies
SN - 0022-0388
IS - 2
ER -