The Local Impact of Mining in Peruvian Districts: Evidence of a Subnational Resource Curse?

Fridtjof Bahlburg
Additional contact information
Fridtjof Bahlburg: School of Business and Economics, Center for Interdisciplinary Economics, University of M nster, M nster, Germany.

International Journal of Energy Economics and Policy, 2023, vol. 13, issue 4, 264-286

Abstract: In the early 2000s, Peru experienced a major mining boom as global prices skyrocketed. At the same time, the country implemented a revenue-sharing arrangement between the national government and subnational governments, to redistribute the newly gained financial windfalls. Using census as well as survey data, we compare producing and non-producing districts in order to determine the effects of mining transfers on local development. We find evidence that producing districts were characterized by better development than non-producing districts before the establishment of a transfer of mining rents (the so-called Canon Minero). These effects persist when comparing districts over time. Concerning the effect of Canon Minero transfers on local development, we find that these transfers, through district governments expenditures, contribute to a reduced poverty rate and increased per capita consumption when comparing producing as well as non-producing districts in producing provinces to non-producing districts in non-producing provinces.

Keywords: Subnational Resource Curse; Mining Transfers; Poverty; Local Development; Revenue Sharing (search for similar items in EconPapers)
JEL-codes: H23 H71 H75 Q33 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.econjournals.com/index.php/ijeep/article/download/14319/7396 (application/pdf)
https://www.econjournals.com/index.php/ijeep/article/view/14319 (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eco:journ2:2023-04-29

Access Statistics for this article

International Journal of Energy Economics and Policy is currently edited by Ilhan Ozturk

More articles in International Journal of Energy Economics and Policy from Econjournals
Bibliographic data for series maintained by Ilhan Ozturk ().