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Exctractive Industries and Local Development in the Peruvian Highlands

Author

Listed:
  • Elisa Ticci

    (Department of Economic Policy, Finance and Development, University of Siena)

  • Javier Escobal

    (Grupo de Análisis para el Desarrollo (GRADE), Lima, Peru)

Abstract

During the last decade, the mining sector in Peru has been experiencing sustained growth. Using Census, administrative, nationally and regionally representative data we compare districts in the Peruvian Highlands with a recent mining history with suitable counterfactuals. We find that the new mining activities attract migration inflows, and have some positive effects over educational indicators. The study also shows that districts which lower level of corporate social expenditure have on average smaller impacts. However, the local potential welfare effect of the mining boom is largely untapped and the role of corporate social responsibility for its full materialization is still limited.

Suggested Citation

  • Elisa Ticci & Javier Escobal, 2012. "Exctractive Industries and Local Development in the Peruvian Highlands," Working Papers - Economics wp2012_22.rdf, Universita' degli Studi di Firenze, Dipartimento di Scienze per l'Economia e l'Impresa.
    • Handle: RePEc:frz:wpaper:wp2012_22.rdf
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    2. Angelo Antoci & Paolo Russu & Elisa Ticci, 2019. "Mining and Local Economies: Dilemma between Environmental Protection and Job Opportunities," Sustainability, MDPI, vol. 11(22), pages 1-21, November.
    3. Paredes, Maritza, 2019. "Local resource-based growth, inequality, and state capacity," economic sociology. perspectives and conversations, Max Planck Institute for the Study of Societies, vol. 20(3), pages 12-18.
    4. Somaye Narrei & Majid Ataee-pour, 2021. "Assessment of personal preferences concerning the social impacts of mining with choice experiment method," Mineral Economics, Springer;Raw Materials Group (RMG);Luleå University of Technology, vol. 34(1), pages 39-49, April.
    5. 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.
    6. Insa Flachsbarth & Simone Schotte & Jann Lay & Alberto Garrido, 2018. "Rural structural change, poverty and income distribution: evidence from Peru," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 16(4), pages 631-653, December.
    7. Fabry, Anna & Maertens, Miet, 2025. "Temporary labor mobility to various geographical and sectoral destinations improves rural incomes − Insights from Peru," World Development, Elsevier, vol. 185(C).
    8. Youmanli Ouoba, 2017. "Artisanal versus industrial mining: impacts on poverty in regions of Burkina Faso," Mineral Economics, Springer;Raw Materials Group (RMG);Luleå University of Technology, vol. 30(3), pages 181-191, October.
    9. Sánchez-Dávila, Elmer & Riquelme, Andrés, 2025. "Mineral price shocks on macroeconomic aggregates in a highly dependent small open economy: Evidence from Peru, 2003–2024," Resources Policy, Elsevier, vol. 108(C).
    10. Bansal, Sanchita & Singh, Shifali & Nangia, Priya & Chanaliya, Nisha & Sala, Dariusz, 2024. "Sustaining the mining industry through the lens of corporate social responsibility: A review research," Resources Policy, Elsevier, vol. 99(C).
    11. Aragón, Fernando M. & Winkler, Hernan, 2023. "The long-term impact of a resource-based fiscal windfall: Evidence from the Peruvian canon," Resources Policy, Elsevier, vol. 87(PA).
    12. José Carlos Orihuela & Victor Gamarra Echenique, 2018. "Variegated dependence: The geographically differentiated economic outcomes of resource-based development in Peru, 2001-2015," Documentos de Trabajo / Working Papers 2018-458, Departamento de Economía - Pontificia Universidad Católica del Perú.

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    Keywords

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    JEL classification:

    • L72 - Industrial Organization - - Industry Studies: Primary Products and Construction - - - Mining, Extraction, and Refining: Other Nonrenewable Resources
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • N56 - Economic History - - Agriculture, Natural Resources, Environment and Extractive Industries - - - Latin America; Caribbean
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)

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