Impact of the mining canon on economic growth and poverty in the mining regions of Peru, 2004-2015

Abstract

The purpose of this research work is to analyze and explain the impact of the mining canon on the economic growth and poverty incidence of the main mining regions of Peru during the years 2004 to 2015. For this purpose, static panel data, statistical information has been used. which has been compiled from different institutions in the country. The explanatory research was applied to determine the cause and effect relationship between the mining canon, economic growth and incidence of poverty, in a sample of seven mining regions of Peru, Ancash, Cajamarca, La Libertad, Tacna, Puno, Arequipa and Moquegua applying the econometric model panel data of random effects, once corrected the problems of autocorrelation and heteroscedasticity with the Generalized Least Squares method, it is obtained that the mining canon has a statistically significant positive impact on regional economic growth (GVA), Increase the Mining Canon per capita in the seven mining regions of Peru by 1% The Gross Value Added per capita of these regions increases on average 0.41%. On the other hand, the mining canon contributes to the reduction of poverty and, by increasing the mining canon by 1%, the incidence of poverty is reduced by 8.03%.