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Extractive Industries and Local Development in the Peruvian Highlands: Socio-Economic Impacts of the Mid-1990s Mining Boom

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  • Elisa Ticci

Abstract

Since the late Nineties, the mining sector in Peru has been experiencing a protracted period of rapid growth. This paper investigates local impacts of the mining boom on migration, on access to basic services, on labour market and on occupational distribution across sectors. By applying propensity score matching technique, mining and non-mining districts are compared. The results show that recent mining expansion has encouraged migration inflows to mining districts and affected the sectoral composition of the labor force in these areas. However, despite the great expectations and the new institutional and legislative settings, the mining growth has not produced a multiplicative effect on non-mining and non-agricultural activities and did not boost a process of economic diversification towards non-primary sector. Finally, the analysis shows a significant heterogeneity in impacts on labour opportunities and on access to basic services across rural and urban areas, and between districts with a long history of mining exploitation and new mining areas.

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Bibliographic Info

Paper provided by European University Institute in its series RSCAS Working Papers with number 2011/14.

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Date of creation: 08 Mar 2011
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Handle: RePEc:rsc:rsceui:2011/14

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Keywords: extractive industry; Peru; local development;

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  1. Anthony Bebbington & Leonith Hinojosa & Denise Humphreys Bebbington & Maria Luisa Burneo & Ximena Warnaars, 2008. "Contention and Ambiguity: Mining and the Possibilities of Development," Brooks World Poverty Institute Working Paper Series 5708, BWPI, The University of Manchester.
  2. Yelpaala, Kaakpema & Ali, Saleem H., 2005. "Multiple scales of diamond mining in Akwatia, Ghana: addressing environmental and human development impact," Resources Policy, Elsevier, vol. 30(3), pages 145-155, September.
  3. Sascha O. Becker & Andrea Ichino, 2002. "Estimation of average treatment effects based on propensity scores," Stata Journal, StataCorp LP, vol. 2(4), pages 358-377, November.
  4. Eduardo Zegarra & José Carlos Orihuela & Maritza Paredes, 2007. "¿Minería y economía de los hogares en la sierra peruana: impactos y espacios de conflicto," Documentos de Investigación dt51, Grupo de Análisis para el Desarrollo (GRADE).
  5. Poelhekke, Steven & van der Ploeg, Frederick, 2007. "Volatility, Financial Development and the Natural Resource Curse," CEPR Discussion Papers 6513, C.E.P.R. Discussion Papers.
  6. Ning Ding & Barry C. Field, 2005. "Natural Resource Abundance and Economic Growths," Land Economics, University of Wisconsin Press, vol. 81(4).
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