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Impact of metal mining on per capita family income in Peru

Author

Listed:
  • René Paz Paredes Mamani

    (Universidad Nacional del Altiplano, Puno)

  • Roberto Arpi Mayta

    (Universidad Nacional del Altiplano, Puno)

  • Roberto Chávez Flores

    (Universidad Nacional del Altiplano, Puno)

  • Faustino Ccama Uchiri

    (Universidad Nacional Autónoma de Huanta)

Abstract

The objective of the research was to measure the impact of metal mining production on per capita family income at the district level, during the period 2003 and 2019. For this purpose, the data from the United Nations report and the econometric methodology of difference in differences were used with and without spatial effects. The results without spatial effect show that the impact of mining on monthly per capita family income between 2003 and 2019 was 207.42 soles. However, considering the effects of spatial spillover, the total impact was 291.61 soles, which is decomposed into a direct and indirect impact of 189.77 soles and 101.84 soles, respectively. Likewise, the results suggest that there is a total impact of 77.25 soles on the per capita family income of the neighboring non-mining district. These results suggest that there is ample space for the design and implementation of public policies for the mining sector.

Suggested Citation

  • René Paz Paredes Mamani & Roberto Arpi Mayta & Roberto Chávez Flores & Faustino Ccama Uchiri, 2022. "Impact of metal mining on per capita family income in Peru," Mineral Economics, Springer;Raw Materials Group (RMG);Luleå University of Technology, vol. 35(2), pages 283-294, June.
    • Handle: RePEc:spr:minecn:v:35:y:2022:i:2:d:10.1007_s13563-021-00298-9
    DOI: 10.1007/s13563-021-00298-9
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    References listed on IDEAS

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    1. Loayza, Norman & Rigolini, Jamele, 2016. "The Local Impact of Mining on Poverty and Inequality: Evidence from the Commodity Boom in Peru," World Development, Elsevier, vol. 84(C), pages 219-234.
    2. Ticci, Elisa & Escobal, Javier, 2015. "Extractive industries and local development in the Peruvian Highlands," Environment and Development Economics, Cambridge University Press, vol. 20(1), pages 101-126, February.
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    4. Sidorenko, Olga & Sairinen, Rauno & Moore, Kathryn, 2020. "Rethinking the concept of small-scale mining for technologically advanced raw materials production," Resources Policy, Elsevier, vol. 68(C).
    5. Mario D. Tello, 2018. "Empleo en industrias extractivas del Perú: un análisis espacial o geográfico," Revista Economía, Fondo Editorial - Pontificia Universidad Católica del Perú, vol. 41(81), pages 9-34.
    6. Issaka Kanton Osumanu, 2020. "Small-scale Mining and Livelihood Dynamics in North-eastern Ghana: Sustaining Rural Livelihoods in a Changing Environment," Progress in Development Studies, , vol. 20(3), pages 208-222, July.
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