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The spatially asymmetric evolution of mining services suppliers during the expansion and contraction phases of the copper super-cycle in Chile

Miguel Atienza and Felix Modrego ()

Resources Policy, 2019, vol. 61, issue C, 77-87

Abstract: Mining services suppliers (MSS) have become one of the main targets of mining-led development policies, but there are not works that analyze their evolution during mineral prices cycles at a local level. The study of this group of firms is especially relevant to understand the curse or blessing consequences of mining prices volatility. We describe the performance of Chilean MSS during and after the “super-cycle”, between 2006 and 2016, and analyze to what extent it is related to the location in municipalities specialized or not in mining activities. For these purpose, we use two unusually rich micro-level datasets that allow us to follow around 3500 services supplier during the period of analysis, describe their evolution, and conduct a series of variance-decomposition exercises to assess the differences in the MSS sector along the cycle and according to the firms´ location. Result show that the expansion phase of the cycle especially benefitted mining municipalities in terms of business formation and growth, while the contraction phase since 2012 negatively affected the whole group of suppliers independently of their location.

Keywords: Q32; N56; O54; R11; Chile; Mining Services Suppliers; Copper Price Cycle; Local Development (search for similar items in EconPapers)
Date: 2019
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DOI: 10.1016/j.resourpol.2019.01.014

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