Natural Resources and Local Communities: Evidence from a Peruvian Gold Mine

Fernando M. Arag?n and Juan Pablo Rud
Authors registered in the RePEc Author Service: Fernando Martín Aragón Sánchez

American Economic Journal: Economic Policy, 2013, vol. 5, issue 2, 1-25

Abstract: This paper examines the local economic impact of Yanacocha, a large gold mine in Northern Peru. Using annual household data from 1997 to 2006, we find evidence of a positive effect of the mine?s demand for local inputs on real income. The effects are only present in the supply market and surrounding areas, and reach unskilled workers in non-mining sectors. Consistent with a general equilibrium framework, we also find an increase in the local price of nontradable goods. Taken together, our results underline the potential of backward linkages from extractive industries to create positive spillovers in less developed economies. (JEL L72, O13, O18, Q32, Q33, R11)

JEL-codes: L72 O13 O18 Q32 Q33 R11 (search for similar items in EconPapers)
Date: 2013
Note: DOI: 10.1257/pol.5.2.1
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Citations: View citations in EconPapers (260)

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Working Paper: Natural Resources and Local Economic Development: Evidence from a Peruvian Gold Mine (2010)
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