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 mineâ€™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)
Aragón, Fernando M., and Juan Pablo Rud.
"Natural Resources and Local Communities: Evidence from a Peruvian Gold Mine."
American Economic Journal: Economic Policy,
Mining, Extraction, and Refining: Other Nonrenewable Resources
Economic Development: Agriculture; Natural Resources; Energy; Environment; Other Primary Products
Economic Development: Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
Exhaustible Resources and Economic Development
Regional Economic Activity: Growth, Development, Environmental Issues, and Changes