Mining Spillovers in Chile

Esther Perez Ruiz

No 2017/177, IMF Working Papers from International Monetary Fund

Abstract: Chile’s small open economy with significant mismatch between the production and consumption baskets may be represented by three stylized sectors, a commodity sector, a non-commodity tradable sector, and a non-tradable sector. This paper estimates the effect of copper price shocks on mining, manufacturing, and construction—each embodying a sector type. The empirical findings are for positive spillovers from mining to the other two sectors. However, the estimated size of the spillovers seems modest, which raises the question of the potential for mining to be better integrated with the rest of the economy.

Keywords: WP; economy; Dutch disease; exchange rate; Sectoral production; Output spillovers; Chile; copper price shock; la Universidad de Chile Economía y dinero; world copper price; Chilean economy; expenditure switching; expenditure switching effect; Dutch disease effect; copper prices result; costs of production; capital cost; prices of the goods; effects of a copper price shock; Metal prices; Mining sector; Manufacturing; Real effective exchange rates; Positive spillovers; Global (search for similar items in EconPapers)
Pages: 18
Date: 2017-07-31
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Citations: View citations in EconPapers (1)

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