Advanced Search
MyIDEAS: Login to save this paper or follow this series

Poverty, inequality, and the local natural resource curse

Contents:

Author Info

  • Loayza, Norman
  • Mier y Teran, Alfredo
  • Rigolini, Jamele

Abstract

The extent to which local communities benefit from commodity booms has been subject to wide but inconclusive investigations. This paper draws from a new district-level database to investigate the local impact on socioeconomic outcomes of mining activity in Peru, which grew almost twentyfold in the last two decades. The authors find evidence that producing districts have better average living standards than otherwise similar districts: larger household consumption, lower poverty rate, and higher literacy. However, the positive impacts from mining decrease significantly with administrative and geographic distance from the mine, while district-level consumption inequality increases in all districts belonging to a producing province. The inequalizing impact of mining activity, both across and within districts, may explain part of the current social discontent with mining activities in the country, even despite its enormous revenues.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://www-wds.worldbank.org/servlet/WDSContentServer/WDSP/IB/2013/02/20/000158349_20130220084323/Rendered/PDF/wps6366.pdf
Download Restriction: no

Bibliographic Info

Paper provided by The World Bank in its series Policy Research Working Paper Series with number 6366.

as in new window
Length:
Date of creation: 01 Feb 2013
Date of revision:
Handle: RePEc:wbk:wbrwps:6366

Contact details of provider:
Postal: 1818 H Street, N.W., Washington, DC 20433
Phone: (202) 477-1234
Email:
Web page: http://www.worldbank.org/
More information through EDIRC

Related research

Keywords: Subnational Economic Development; Rural Poverty Reduction; Regional Economic Development; Economic Theory&Research; Housing&Human Habitats;

Other versions of this item:

Find related papers by JEL classification:

This paper has been announced in the following NEP Reports:

References

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
as in new window
  1. Javier Arellano-Yanguas, 2011. "Aggravating the Resource Curse: Decentralisation, Mining and Conflict in Peru," Journal of Development Studies, Taylor & Francis Journals, vol. 47(4), pages 617-638.
  2. Guy Michaels, 2007. "The long term consequences of resource based specialization," LSE Research Online Documents on Economics 3249, London School of Economics and Political Science, LSE Library.
  3. Paul Collier & Benedikt Goderis, 2007. "Commodity Prices, Growth, and the Natural Resource Curse: Reconciling a Conundrum," Economics Series Working Papers WPS/2007-15, University of Oxford, Department of Economics.
  4. Norman V. Loayza & Jamele Rigolini & Oscar Calvo-Gonzlez, 2014. "More than You Can Handle Decentralization and Spending Ability of Peruvian Municipalities," Working Papers 2014-4, Peruvian Economic Association.
  5. Fernando M. Aragon & Juan Pablo Rud, 2010. "Natural Resources and Local Economic Development: Evidence from a Peruvian Gold Mine," Discussion Papers dp10-04, Department of Economics, Simon Fraser University.
  6. Brollo, Fernanda & Nannicini, Tommaso & Perotti, Roberto & Tabellini, Guido, 2010. "The Political Resource Curse," IZA Discussion Papers 4706, Institute for the Study of Labor (IZA).
  7. World Bank & Inter-American Development Bank, 2003. "Restoring Fiscal Discipline for Poverty Reduction in Peru : A Public Expenditure Review," World Bank Publications, The World Bank, number 15118, October.
  8. Sachs, Jeffrey D. & Warner, Andrew M., 2001. "The curse of natural resources," European Economic Review, Elsevier, vol. 45(4-6), pages 827-838, May.
  9. Franceso Caselli & Guy Michaels, 2009. "Do Oil Windfalls Improve Living Standards? Evidence from Brazil," OxCarre Working Papers 028, Oxford Centre for the Analysis of Resource Rich Economies, University of Oxford.
  10. Stephan Litschig, 2008. "Financing local development: Quasi-experimental evidence from municipalities in Brazil, 1980-1991," Economics Working Papers 1142, Department of Economics and Business, Universitat Pompeu Fabra, revised Jun 2012.
  11. Leonith Hinojosa, 2011. "Riqueza Mineral Y Pobreza En Los Andes," The European Journal of Development Research, Palgrave Macmillan, vol. 23(3), pages 488-504, July.
  12. Frederick van der Ploeg, 2011. "Natural Resources: Curse or Blessing?," Journal of Economic Literature, American Economic Association, vol. 49(2), pages 366-420, June.
  13. Oeindrila Dube & Juan F. Vargas, 2013. "Commodity Price Shocks and Civil Conflict: Evidence from Colombia," Review of Economic Studies, Oxford University Press, vol. 80(4), pages 1384-1421.
  14. Raddatz, Claudio, 2007. "Are external shocks responsible for the instability of output in low-income countries?," Journal of Development Economics, Elsevier, vol. 84(1), pages 155-187, September.
Full references (including those not matched with items on IDEAS)

Citations

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:wbk:wbrwps:6366. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Roula I. Yazigi).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.