Mining Spillovers in Chile

July 31, 2017

Preview Citation

Format: Chicago

. Esther Perez Ruiz Mining Spillovers in Chile, (USA: International Monetary Fund, 2017) accessed September 20, 2024

Disclaimer: IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.

Summary

Chile’s small open economy with significant mismatch between the production and consumption baskets may be represented by three stylized sectors, a commodity sector, a non-commodity tradable sector, and a non-tradable sector. This paper estimates the effect of copper price shocks on mining, manufacturing, and construction—each embodying a sector type. The empirical findings are for positive spillovers from mining to the other two sectors. However, the estimated size of the spillovers seems modest, which raises the question of the potential for mining to be better integrated with the rest of the economy.

Subject: Economic sectors, Financial sector policy and analysis, Foreign exchange, Manufacturing, Metal prices, Mining sector, Positive spillovers, Prices, Real effective exchange rates

Keywords: Capital cost, Chile, Chilean economy, Copper price shock, Copper prices result, Costs of production, Dutch disease, Dutch disease effect, Economy, Effects of a copper price shock, Exchange rate, Expenditure switching, Expenditure switching effect, Global, La Universidad de Chile Economía y dinero, Manufacturing, Metal prices, Mining sector, Output spillovers, Positive spillovers, Prices of the goods, Real effective exchange rates, Sectoral production, World copper price, WP

Publication Details

Pages:

18
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 2017/177
Stock No:

WPIEA2017177
ISBN:

9781484312698
ISSN:

1018-5941

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