Natural Resources and Local Economic Development: Evidence from a Peruvian Gold Mine
AbstractThis paper uses the case of Yanacocha, a large gold mine in Peru, to examine the link between natural resources and local economic development. We find evidence of a positive and sizeable effect of the mine on real income, household consumption and poverty reduction. The effects are driven by the mine's demand of local inputs, not by the expansion of local public spending or by compensating differentials for negative spillovers. Using a spatial general equilibrium model, we interpret these results as evidence of economic gains generated by the mine's backward linkages.
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Bibliographic InfoPaper provided by Department of Economics, Simon Fraser University in its series Discussion Papers with number dp10-04.
Date of creation: Nov 2010
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Postal: Department of Economics, Simon Fraser University, 8888 University Drive, Burnaby, BC, V5A 1S6, Canada
Web page: http://www.sfu.ca/economics.html
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Postal: Working Paper Coordinator, Department of Economics, Simon Fraser University, 8888 University Drive, Burnaby, BC, V5A 1S6, Canada
Find related papers by JEL classification:
- O13 - Economic Development, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
- Q32 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Exhaustible Resources and Economic Development
- Q33 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Resource Booms (Dutch Disease)
- R20 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - General
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- Loayza, Norman & Mier y Teran, Alfredo & Rigolini, Jamele, 2013.
"Poverty, inequality, and the local natural resource curse,"
Policy Research Working Paper Series
6366, The World Bank.
- Loayza, Norman & Mier y Teran, Alfredo & Rigolini, Jamele, 2013. "Poverty, Inequality, and the Local Natural Resource Curse," IZA Discussion Papers 7226, Institute for the Study of Labor (IZA).
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