{
  "title": "Mining Spillovers in Chile",
  "publication": "IMF Working Papers, July 31, 2017",
  "sourceUrl": "https://www.imf.org/en/publications/wp/issues/2017/07/31/mining-spillovers-in-chile-45143",
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  "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.",
  "sections": [
    {
      "heading": "Summary",
      "content": "- Chile’s small open economy can be represented by three stylized sectors: a commodity sector, a non-commodity tradable sector, and a non-tradable sector.\n- The paper estimates the effect of copper price shocks on mining, manufacturing, and construction—each embodying one of the sector types.\n- Empirical findings show positive spillovers from mining to manufacturing and construction.\n- The estimated size of the spillovers is modest, raising questions about the potential for mining to be better integrated with the rest of the economy."
    },
    {
      "heading": "Empirical focus and methodology",
      "content": "- Sectoral focus: mining (commodity sector), manufacturing (non-commodity tradable sector), construction (non-tradable sector).\n- Shock analyzed: copper price shocks (world copper price).\n- Outcome variables: sectoral production and output spillovers; real effective exchange rates and prices are relevant themes."
    },
    {
      "heading": "Key findings",
      "content": "- Positive spillovers from mining to:\n  - Manufacturing (non-commodity tradable sector).\n  - Construction (non-tradable sector).\n- Magnitude: described as modest (no additional numeric magnitudes provided on the page).\n- Related considerations highlighted: Dutch disease, expenditure switching, exchange rate effects, costs of production, capital cost."
    },
    {
      "heading": "Policy implications and questions raised",
      "content": "- The modest size of observed spillovers implies limited integration of mining with the broader economy.\n- Policy-relevant question: potential for mining to be better integrated with the rest of the economy to amplify spillovers.\n- Areas relevant for policy analysis: expenditure switching effects, exchange rate dynamics (real effective exchange rates), and structural policies to link mining with manufacturing and construction.\n\n---\n\n Content in this bundle\n\n- Mining Spillovers in Chile, WP/17/177, July 2017\n  - Mining Spillovers in Chile, WP/17/177, July 2017 (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - Mining Spillovers in Chile, WP/17/177, July 2017 (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/wp/issues/2017/07/31/mining-spillovers-in-chile-45143"
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    "Authors: Esther Perez Ruiz",
    "Published: July 31, 2017",
    "Series: IMF Working Papers",
    "DOI: https://doi.org/10.5089/9781484312698.001",
    "Chile’s small open economy can be represented by three stylized sectors: a commodity sector, a non-commodity tradable sector, and a non-tradable sector.",
    "The paper estimates the effect of copper price shocks on mining, manufacturing, and construction—each embodying one of the sector types.",
    "Empirical findings show positive spillovers from mining to manufacturing and construction.",
    "The estimated size of the spillovers is modest, raising questions about the potential for mining to be better integrated with the rest of the economy.",
    "Sectoral focus: mining (commodity sector), manufacturing (non-commodity tradable sector), construction (non-tradable sector).",
    "Shock analyzed: copper price shocks (world copper price).",
    "Outcome variables: sectoral production and output spillovers; real effective exchange rates and prices are relevant themes.",
    "Positive spillovers from mining to:",
    "Magnitude: described as modest (no additional numeric magnitudes provided on the page).",
    "Related considerations highlighted: Dutch disease, expenditure switching, exchange rate effects, costs of production, capital cost.",
    "The modest size of observed spillovers implies limited integration of mining with the broader economy.",
    "Policy-relevant question: potential for mining to be better integrated with the rest of the economy to amplify spillovers.",
    "Areas relevant for policy analysis: expenditure switching effects, exchange rate dynamics (real effective exchange rates), and structural policies to link mining with manufacturing and construction.",
    "**Mining Spillovers in Chile, WP/17/177, July 2017**"
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