Extractive industries and local development in the Peruvian Highlands

During the last 20 years, the mining sector in Peru has been experiencing sustained growth. Using census, administrative, nationally and regionally representative data we compare districts in the Peruvian Highlands with a recent mining development with suitable counterfactuals. We find that the new...

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Bibliographic Details
Published in:Environment and development economics 2015-02, Vol.20 (1), p.101-126
Main Authors: Ticci, Elisa, Escobal, Javier
Format: Article
Language:English
Subjects:
Case studies
Census
Community
Economic development
Economics
Education
Environmental impact
Estimates
Expenditures
Externality
Extractive industries
Highlands
Industrial development
Literature reviews
Migration
Mines
Mining
Mining industry
Social responsibility
Studies
Welfare economics
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Summary:During the last 20 years, the mining sector in Peru has been experiencing sustained growth. Using census, administrative, nationally and regionally representative data we compare districts in the Peruvian Highlands with a recent mining development with suitable counterfactuals. We find that the new mining activities attract migration inflows, and have some positive effects over educational indicators, and that these impacts, on average, are smaller in districts with lower levels of corporate social expenditure. However, the results of this study suggest that the local potential welfare impact of the mining boom is largely untapped and corporate social responsibility has had a limited role in improving this effect.
ISSN:1355-770X
1469-4395
DOI:10.1017/S1355770X13000685