Mining as a Regional Resource Course? Evidence from the Chilean Case

This article explores the impacts of exogenous price shocks in international copper markets on multidimensional poverty indicators in Chile at the municipal level. Using a robust data set of local socioeconomic characteristics and a data set of historical price data for copper, we will assess how different price shocks affect development outcomes of those households in multidimensional poverty. Specifically, we examine how changes in the price of copper affect education, health, housing, and working conditions in municipalities where copper production is one of the primary economic drivers. We find the effects tend to be positive, long-term, and significant for the composite indicators, whereas individual variables, such as housing and education, tend towards short-term effects due to substitution effects