Private Investment in a Mining Export Economy: a Model for Peru
Waldo Mendoza and
Erika Collantes Goicochea
No 2018-460, Documentos de Trabajo / Working Papers from Departamento de Economía - Pontificia Universidad Católica del Perú
Abstract:
This paper presents a theoretical model about investment in the mining sector and the housing sector. The demand for investment in mining, a demand derived from mining production, limited by a non-renewable production factor, is financed at the interest rate fixed by the world market. In the housing sector, the price and volume of investment are determined in the local market, by supply and demand. The model shows the strong dependence on mining investment and the housing of international conditions. Likewise, the existence of a non-renewable mining production factor implies that, with the passage of time, if new mines are not discovered, investment in mining and housing should be reduced. JEL Classification-JEL: E22 , L72 , L74 Keywords: Investment in the Mining Sector, Investment in the Housing Sector, Non-renewable resources
Pages: 20
Date: 2018
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