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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

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  • Atienza, Miguel
  • Modrego, Félix

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.

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  • Atienza, Miguel & Modrego, Félix, 2019. "The spatially asymmetric evolution of mining services suppliers during the expansion and contraction phases of the copper super-cycle in Chile," Resources Policy, Elsevier, vol. 61(C), pages 77-87.
    • Handle: RePEc:eee:jrpoli:v:61:y:2019:i:c:p:77-87
    DOI: 10.1016/j.resourpol.2019.01.014
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    Cited by:

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    3. Su, Chi-Wei & Wang, Xiao-Qing & Zhu, Haotian & Tao, Ran & Moldovan, Nicoleta-Claudia & Lobonţ, Oana-Ramona, 2020. "Testing for multiple bubbles in the copper price: Periodically collapsing behavior," Resources Policy, Elsevier, vol. 65(C).
    4. Rodríguez-Puello, Gabriel & Chávez, Alicia & Pérez Trujillo, Manuel, 2022. "Youth unemployment during economic shocks: Evidence from the metal-mining prices super cycle in Chile," Resources Policy, Elsevier, vol. 79(C).
    5. Irarrazaval, Felipe, 2022. "Social protest at mining territories: Examining contentious politics at mining districts in Chile," Resources Policy, Elsevier, vol. 78(C).
    6. Valeriy Kryukov & Anatoliy Tokarev, 2022. "Spatial trends of innovation in the Russian oil and gas sector: What does patent activity in Siberia and the Arctic reflect?," Regional Science Policy & Practice, Wiley Blackwell, vol. 14(1), pages 127-146, February.
    7. Chávez, Alicia & Rodríguez-Puello, Gabriel, 2022. "Commodity price shocks and the gender wage gap: Evidence from the Metal Mining Prices Super-Cycle in Chile," Resources Policy, Elsevier, vol. 76(C).
    8. Félix Modrego & Andrea Canales & Héctor Bahamonde, 2020. "Employment effects of COVID‐19 across Chilean regions: An application of the translog cost function," Regional Science Policy & Practice, Wiley Blackwell, vol. 12(6), pages 1151-1167, December.

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    More about this item

    Keywords

    Q32; N56; O54; R11; Chile; Mining Services Suppliers; Copper Price Cycle; Local Development;
    All these keywords.

    JEL classification:

    • Q32 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Exhaustible Resources and Economic Development
    • N56 - Economic History - - Agriculture, Natural Resources, Environment and Extractive Industries - - - Latin America; Caribbean
    • O54 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Latin America; Caribbean
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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