Impact of metal mining on per capita family income in Peru

Abstract

The objective of the research was to measure the impact of metal mining production on per capita family income at the district level, during the period 2003 and 2019. For this purpose, the data from the United Nations report and the econometric methodology of difference in differences were used with and without spatial effects. The results without spatial effect show that the impact of mining on monthly per capita family income between 2003 and 2019 was 207.42 soles. However, considering the effects of spatial spillover, the total impact was 291.61 soles, which is decomposed into a direct and indirect impact of 189.77 soles and 101.84 soles, respectively. Likewise, the results suggest that there is a total impact of 77.25 soles on the per capita family income of the neighboring non-mining district. These results suggest that there is ample space for the design and implementation of public policies for the mining sector.