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Country competitiveness and investment allocation in the mining industry: A survey of the literature and new empirical evidence

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  • Vásquez Cordano, Arturo L.
  • Prialé Zevallos, Rodrigo

Abstract

Mining exploration investment is the primary driver of future mining production. Without exploration investment, it is not possible to sustain metal production. Countries with higher mining competitiveness will tend to attract larger amounts of exploration investments. According to the so-called “traditional” view, a country's geological potential is a crucial determinant of its mining competitiveness. This proposition implies that the geological potential would be the primary driver for allocating exploration investments worldwide. Recently, an “alternative” view of mining competitiveness emerged. According to this hypothesis, a country's investment climate is the primary determinant of its mining competitiveness. However, the empirical evidence supporting the “alternative” view is still scarce.

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  • Vásquez Cordano, Arturo L. & Prialé Zevallos, Rodrigo, 2021. "Country competitiveness and investment allocation in the mining industry: A survey of the literature and new empirical evidence," Resources Policy, Elsevier, vol. 73(C).
    • Handle: RePEc:eee:jrpoli:v:73:y:2021:i:c:s0301420721001501
    DOI: 10.1016/j.resourpol.2021.102136
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    More about this item

    Keywords

    Mining competitiveness; Mining exploration investment allocation; Social conflicts; Poisson pseudo-maximum likelihood method; Investment climate; Geological potential; Regional elasticities;
    All these keywords.

    JEL classification:

    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • C52 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Evaluation, Validation, and Selection
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • L72 - Industrial Organization - - Industry Studies: Primary Products and Construction - - - Mining, Extraction, and Refining: Other Nonrenewable Resources
    • Q38 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Government Policy (includes OPEC Policy)

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