Can a Mining Windfall Improve Welfare? Evidence from Peru with Municipal Level Data

Adriana Arreaza and Alexandra Reuter

No 233, Research Department working papers from CAF Development Bank Of Latinamerica

Abstract: In this paper we investigate whether fiscal performance is affected by the presence of natural resource revenues. We compare policy outcomes from mineral-abundant municipalities and non mineral-abundant municipalities in Peru, before and after the mining windfall. We use a difference in difference approach with municipal-level data, profiting from the exogeneity of mining canon transfers. Our findings are not consistent with a significant difference in terms of public goods provisioning between canon recipient governments and non-recipient governments. We do not find that citizen participation in public governance alter these results. Mineral rich regions do not seem to be reaping the benefit of the windfall.

Keywords: Sector financiero; Desarrollo; Economía; Investigación socioeconómica; Minería; Recursos naturales (search for similar items in EconPapers)
Date: 2012
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Persistent link: https://EconPapers.repec.org/RePEc:dbl:dblwop:233

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