Mining Concession Fee Transfers and Departmental Non-Extractive GDP in Peru, 2007–2024
DOI:
https://doi.org/10.51252/race.v5i2.1707Keywords:
panel data, regional development, econometrics, fixed effects, public investmentAbstract
Mining concession fee transfers constitute a source of resources for subnational governments, although their contribution to regional growth has received limited attention. This study aimed to estimate their effect on departmental non-extractive GDP per capita in Peru between 2007 and 2024. A balanced panel comprising 19 departments and 342 observations was constructed using information from INEI, MEF, MINEM, and IPE. Unit root and cointegration tests were applied, followed by the estimation of pooled, fixed-effects, and random-effects models. The Hausman test favored the fixed-effects specification, while heteroskedasticity and cross-sectional dependence were addressed using Driscoll-Kraay standard errors. The results showed that a 1% increase in per capita transfers was associated with an approximate 0.13% rise in non-extractive GDP per capita. Positive effects were also identified for public investment, labor participation, and access to electricity, whereas poverty and illiteracy showed negative effects. It was concluded that these transfers supported non-extractive economic activity, although their impact depended on public management and the structural conditions of each department.
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