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A structural path analysis of Chilean mining linkages between 1995 and 2011. What are the channels through which extractive activity affects the economy?

Author

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  • Castaño, Andrés
  • Lufin, Marcelo
  • Atienza, Miguel

Abstract

Changes in the extractive industry since the 1990s have been considered an opportunity to increase mining linkages due to the growth of outsourcing and the formation of a more complex organization of the supply chain. Using information from the Chilean input-output tables compiled by the OECD, we analyze whether or not the expected increase in mining linkages has taken place between 1995 and 2011. Furthermore, we extend the study of linkages using a Structural Path Analysis to understand how the effect of mining linkages is either transmitted to other economic activities or has a limited impact on the rest of the Chilean economy. Results show a significant reduction of mining linkages in Chile especially during the period of higher prices. At the same time, the way the influence of mining activity is transmitted to the rest of the economy through sectoral interactions is limited and lacks complexity.

Suggested Citation

  • Castaño, Andrés & Lufin, Marcelo & Atienza, Miguel, 2019. "A structural path analysis of Chilean mining linkages between 1995 and 2011. What are the channels through which extractive activity affects the economy?," Resources Policy, Elsevier, vol. 60(C), pages 106-117.
    • Handle: RePEc:eee:jrpoli:v:60:y:2019:i:c:p:106-117
    DOI: 10.1016/j.resourpol.2018.12.007
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    References listed on IDEAS

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    2. Atienza, Miguel & Fleming-Muñoz, David & Aroca, Patricio, 2021. "Territorial development and mining. Insights and challenges from the Chilean case," Resources Policy, Elsevier, vol. 70(C).
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    JEL classification:

    • N56 - Economic History - - Agriculture, Natural Resources, Environment and Extractive Industries - - - Latin America; Caribbean
    • O54 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Latin America; Caribbean
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • R15 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Econometric and Input-Output Models; Other Methods

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