Structural Transformation in the Agricultural Sector - Diversity in exports of Moquegua, Peru

Abstract

Economic development does not mean producing more of the same; instead, according to Rickardo Hausmann and his colleagues, it means to diversify and to produce more sophisticated goods. This thesis analyzes how this can be done in the non-traditional agricultural sector of Peru. Export data is obtained from the region of Moquegua and used to trace the development of the sector. The finding is that the exports of the non-traditional agricultural goods increase in diversity mainly because of larger production in the fishing industry. The diversification of exports may help Moquegua and Peru to be less dependent on the mining industry and to structurally transform the economy. This is important since the current exports generate few jobs and leave the country vulnerable to shifts in world prices for minerals.