Extractive Industries and Local Development in the Peruvian Highlands

During the last twenty 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 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