The importance of the mining sector for the development of the Chilean economy: The evolution of its fields of influence

Translated title of the contribution: The importance of the mining sector for the development of the Chilean economy: The evolution of its fields of influence

Sergio Soza-Amigo, Felix Fuders, Patricio Aroca

Research output: Contribution to journalArticlepeer-review

2 Scopus citations

Abstract

This study analyzes how the Chilean economy has evolved, and, in particular, the importance of the copper mining sector in this process. Input-output modeling is used to measure sensitivities and structural changes in production. The information used comes from the Organisation for Economic Co-operation and Development (oecd) and covers an 11-year horizon (from 2005 to 2015). The study reveals the importance that copper has on the development of the Chilean economy. It arises in the relationship changes in the supply and demand of inputs made by this activity. Additionally, the results show a weakening in the sensitivities regarding the relations of the manufacturing industry. This effect is known in the input-output literature as "hollowing-out". A decay of the complexity of the industry's linkages implies a reduction in the sensitivity of direct, indirect, and total links with the rest of the productive system. It also means increasing dependence on the rest of the world on input providers.

Translated title of the contributionThe importance of the mining sector for the development of the Chilean economy: The evolution of its fields of influence
Original languageEnglish
Pages (from-to)831-872
Number of pages42
JournalTrimestre Economico
Volume88
Issue number351
DOIs
StatePublished - Jul 2021

Keywords

  • Economic development
  • Fields of influence
  • Hollowing-out
  • Input-output matrix

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