American Economic Journal:
Economic Policy
ISSN 1945-7731 (Print) | ISSN 1945-774X (Online)
Natural Resources and Local Communities: Evidence from a Peruvian Gold Mine
American Economic Journal: Economic Policy
vol. 5,
no. 2, May 2013
(pp. 1–25)
Abstract
This paper examines the local economic impact of Yanacocha, a large gold mine in Northern Peru. Using annual household data from 1997 to 2006, we find evidence of a positive effect of the mine's demand for local inputs on real income. The effects are only present in the supply market and surrounding areas, and reach unskilled workers in non-mining sectors. Consistent with a general equilibrium framework, we also find an increase in the local price of nontradable goods. Taken together, our results underline the potential of backward linkages from extractive industries to create positive spillovers in less developed economies. (JEL L72, O13, O18, Q32, Q33, R11)Citation
Aragón, Fernando M., and Juan Pablo Rud. 2013. "Natural Resources and Local Communities: Evidence from a Peruvian Gold Mine." American Economic Journal: Economic Policy, 5 (2): 1–25. DOI: 10.1257/pol.5.2.1Additional Materials
JEL Classification
- L72 Mining, Extraction, and Refining: Other Nonrenewable Resources
- O13 Economic Development: Agriculture; Natural Resources; Energy; Environment; Other Primary Products
- O18 Economic Development: Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
- Q32 Exhaustible Resources and Economic Development
- Q33 Resource Booms
- R11 Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
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